That §18-13-1 of the Code of West Virginia, 1931, as amended,
be repealed; that §18-23-4a of said code be repealed; that §18B-8-3a of said code be repealed; that §18B-9-2a, §18B-9-5, §18B-9-7,
§18B-9-8, §18B-9-9, §18B-9-10 and §18B-9-12 of said code be
repealed; that §12-1-12d of said code be amended and reenacted;
that §18B-1-2 and §18B-1-6 of said code be amended and reenacted;
that §18B-1B-4 and §18B-1B-5 of said code be amended and reenacted;
that §18B-2A-3, §18B-2A-4 and §18B-2A-8 of said code be amended and
reenacted; that §18B-2B-3 of said code be amended and reenacted;
that §18B-3-1, §18B-3-3 and §18B-3-4 of said code be amended and
reenacted; that §18B-4-1 of said code be amended and reenacted;
that said code be amended by adding thereto a new section,
designated §18B-4-2a; that §18B-5-9 of said code be amended and
reenacted; that §18B-7-1, §18B-7-2, §18B-7-3, §18B-7-4, §18B-7-5,
§18B-7-6, §18B-7-7, §18B-7-8, §18B-7-9, §18B-7-10, §18B-7-11 and
§18B-7-12 of said code be amended and reenacted; that said code be
amended by adding thereto four new sections, designated §18B-7-13,
§18B-7-14, §18B-7-15 and §18B-7-16; that §18B-8-1, §18B-8-3, §18B-8-4, §18B-8-5 and §18B-8-6 of said code be amended and reenacted;
that said code be amended by adding thereto a new section,
designated §18B-8-2; that §18B-9-1, §18B-9-2, §18B-9-3 and §18B-9-4
of said code be amended and reenacted; that said code be amended by
adding thereto a new article, designated §18B-9A-1, §18B-9A-2,
§18B-9A-3, §18B-9A-4, §18B-9A-5, §18B-9A-6, §18B-9A-7 and §18B-9A-8; and that §18B-10-1 of said code be amended and reenacted, all to
read as follows:

CHAPTER 12. PUBLIC MONEYS AND SECURITIES.

ARTICLE 1. STATE DEPOSITORIES.

§12-1-12d. Investments by Marshall University and West Virginia University.

(a) Notwithstanding any provision of this article to the
contrary, the governing boards of Marshall University and West
Virginia University each may invest certain funds with its
respective nonprofit foundation that has been established to
receive contributions exclusively for that university and which
exists on January 1, 2005. Any such investment is subject to the
limitations of this section.

(b) A governing board, through its chief financial officer may
enter into agreements, approved as to form by the State Treasurer,
for the investment by its foundation of certain funds subject to
their administration. Any interest or earnings on the moneys
invested is retained by the investing university.

(c) Moneys of a university that may be invested with its
foundation pursuant to this section are those subject to the
administrative control of the university that are collected under
an act of the Legislature for specific purposes and do not include
any funds made available to the university from the state General
Revenue Fund or the funds established in sections eighteen or
eighteen-a, article twenty-two, chapter twenty-nine of this code.
Moneys permitted to be invested under this section may be
aggregated in an investment fund for investment purposes.

(d) Of the moneys authorized for investment by this section,
Marshall University and West Virginia University each,
respectively, may have invested with its foundation at any time not
more than the greater of:

(1) $18 million for Marshall University and $25 million for
West Virginia University; or

(2) Sixty-five percent of its unrestricted net assets as
presented in the statement of net assets for the fiscal year end
audited financial reports.

(3) Notwithstanding subdivisions (1) and (2) of this
subsection, with the approval of the Higher Education Policy
Commission, Marshall University may increase the amount invested to
$30 million and West Virginia University may increase the amount
invested to $40 million.

(e) Investments by foundations that are authorized under this
section shall be made in accordance with and subject to the
provisions of the Uniform Prudent Investor Act codified as article
six-c, chapter forty-four of this code. As part of its fiduciary
responsibilities, each governing board shall establish investment
policies in accordance with the Uniform Prudent Investor Act for
those moneys invested with its foundation. The governing board
shall review, establish and modify, if necessary, the investment
objectives as incorporated in its investment policies so as to
provide for the financial security of the moneys invested with its
foundation. The governing boards shall give consideration to the
following:

(1) Preservation of capital;

(2) Diversification;

(3) Risk tolerance;

(4) Rate of return;

(5) Stability;

(6) Turnover;

(7) Liquidity; and

(8) Reasonable cost of fees.

(f) A governing board shall report annually by December 31 to
the Governor and to the Joint Committee on Government and Finance
on the performance of investments managed by its foundation
pursuant to this section.

(g) The amendments to this section in the second
extraordinary session of the Legislature in 2010 shall apply
retroactively so that the authority granted by this section shall
be construed as if that authority did not expire on July 1, 2010.

CHAPTER 18B. HIGHER EDUCATION.

ARTICLE 1. GOVERNANCE.

§18B-1-2. Definitions.

The following words when used in this chapter and chapter
eighteen-c of this code have the meanings ascribed to them unless
the context clearly indicates a different meaning:

(1) “Administratively linked community and technical college”
means a state institution of higher education delivering community
and technical college education and programs which has maintained
a contractual agreement to receive essential services from another
accredited state institution of higher education prior to July 1,
2008;

(2) “Advanced technology center” means a facility established
under the direction of an independent community and technical
college or the council for the purpose of implementing and
delivering education and training programs for high-skill, high-performance Twenty-first Century workplaces;

(3) “Board of visitors” means the advisory board previously
appointed for the West Virginia Graduate College and the advisory
board previously appointed for West Virginia University Institute
of Technology, which provide guidance to the Marshall University
Graduate College and West Virginia University Institute of
Technology, respectively;

(4) “Broker” or “brokering” means serving as an agent on
behalf of students, employers, communities or responsibility areas
to obtain education services not offered at that institution.
These services include courses, degree programs or other services
contracted through an agreement with a provider of education
services either in-state or out-of-state;

(5) “Chancellor” means the Chancellor for Higher Education
where the context refers to a function of the Higher Education
Policy Commission. “Chancellor” means the Chancellor for Community
and Technical College Education where the context refers to a
function of the West Virginia Council for Community and Technical
College Education;

(6) “Chancellor for Community and Technical College Education”
means the chief executive officer of the West Virginia Council for
Community and Technical College Education employed pursuant to
section three, article two-b of this chapter;

(8) “Collaboration” means entering into an agreement with one
or more providers of education services in order to enhance the
scope, quality or efficiency of education services;

(9) “Community and technical college”, in the singular or
plural, means the free-standing community and technical colleges
and other state institutions of higher education which deliver
community and technical college education. This definition
includes Blue Ridge Community and Technical College, Bridgemont
Community and Technical College, Eastern West Virginia Community
and Technical College, Kanawha Valley Community and Technical
College, Mountwest Community and Technical College, New River
Community and Technical College, Pierpont Community and Technical
College, Southern West Virginia Community and Technical College,
West Virginia Northern Community and Technical College and West
Virginia University at Parkersburg;

(10) “Community and technical college education” means the
programs, faculty, administration and funding associated with the
delivery of community and technical college education programs;

(11) “Community and technical college education program” means
any college-level course or program beyond the high school level
provided through a public institution of higher education resulting
in or which may result in a two-year associate degree award
including an associate of arts, an associate of science and an
associate of applied science; certificate programs and skill sets;
developmental education; continuing education; collegiate credit
and noncredit workforce development programs; and transfer and
baccalaureate parallel programs. All programs are under the
jurisdiction of the council. Any reference to “post-secondary
vocational education programs” means community and technical
college education programs as defined in this subsection;

(12) “Council” means the West Virginia Council for Community
and Technical College Education created by article two-b of this
chapter;

(13) “Dual credit course” or “dual enrollment course” means a
credit-bearing college-level course offered in a high school by a
state institution of higher education for high school students in
which the students are concurrently enrolled and receiving credit
at the secondary level.

(14) “Essential conditions” means those conditions which shall
be met by community and technical colleges as provided in section
three, article three-c of this chapter;

(15) “Free-standing community and technical colleges” means
Southern West Virginia Community and Technical College, West
Virginia Northern Community and Technical College, and Eastern West
Virginia Community and Technical College, which may not be operated
as branches or off-campus locations of any other state institution
of higher education;

(16) “Governing boards” or “boards” means the institutional
boards of governors created by section one, article two-a of this
chapter;

(18) “Independent community and technical college” means a
state institution of higher education under the jurisdiction of the
Council which is independently accredited, is governed by its own
independent governing board, and may not be operated as a branch or
off-campus location of any other state institution of higher
education. This definition includes Blue Ridge Community and
Technical College, Bridgemont Community and Technical College,
Eastern West Virginia Community and Technical College, Kanawha
Valley Community and Technical College, Mountwest Community and
Technical College, New River Community and Technical College,
Pierpont Community and Technical College, Southern West Virginia
Community and Technical College, West Virginia Northern Community
and Technical College, and West Virginia University at Parkersburg;

(19) “Institutional compact” means the compact between the
commission or council and a state institution of higher education
under its jurisdiction, as described in section seven, article one-d of this chapter;

(20) “Institutional operating budget” or “operating budget”
means for any fiscal year an institution’s total unrestricted
education and general funding from all sources, including, but not
limited to, tuition and fees and legislative appropriation, and any
adjustments to that funding as approved by the commission or
council based on comparisons with peer institutions or to reflect
consistent components of peer operating budgets;

(21) “Peer institutions”, “peer group” or “peers” means public
institutions of higher education used for comparison purposes and
selected by the commission pursuant to section three, article one-a
of this chapter;

(22) “Rule” or “rules” means a regulation, standard, policy or
interpretation of general application and future effect;

(23) “Sponsoring institution” means a state institution of
higher education that maintained an administrative link to a
community and technical college providing essential services prior
to July 1, 2008. This definition includes institutions whose
governing boards had under their jurisdiction a community and
technical college, regional campus or a division delivering
community and technical college education and programs;

(24) “State college” means Bluefield State College, Concord
University, Fairmont State University, Glenville State College,
Shepherd University, West Liberty University or West Virginia State
University;

(25) “State institution of higher education” means any
university, college or community and technical college under the
jurisdiction of a governing board as that term is defined in this
section;

(26) “Statewide network of independently accredited community
and technical colleges” or “community and technical college
network” means the state institutions of higher education under the
jurisdiction of the West Virginia Council for Community and
Technical College Education which are independently accredited,
each governed by its own independent governing board, and each
having a core mission of providing affordable access to and
delivering high quality community and technical education in every
region of the state;

(27) “Vice Chancellor for Administration” means the person
employed in accordance with section two, article four of this
chapter. Any reference in this chapter or chapter eighteen-c of
this code to “Senior Administrator” means Vice Chancellor for
Administration;

(28) “Vice Chancellor for Human Resources” means the person
employed by the commission and the council jointly pursuant to
section two-a, article four of this chapter. The person employed
as senior director of human resources by the commission on January
1, 2011, becomes the Vice Chancellor for Human Resources on the
effective date of this section; and

(29) “West Virginia Consortium for Undergraduate Research and
Engineering” or “West Virginia CURE” means the collaborative
planning group established by article one-c of this chapter.

§18B-1-6. Rulemaking.

(a) The commission is hereby empowered to promulgate, adopt,
amend or repeal rules, in accordance with article three-a, chapter
twenty-nine-a of this code, subject to section three of this
article.

(b) The council is hereby empowered to promulgate, adopt,
amend or repeal rules in accordance with article three-a, chapter
twenty-nine-a of this code, subject to section three of this
article. This grant of rule-making power extends only to those
areas over which the council has been granted specific authority
and jurisdiction by law.

(c) As it relates to the authority granted to governing boards
of state institutions of higher education to promulgate, adopt,
amend or repeal any rule under this code:

(1) "Rule" means any regulation, guideline, directive,
standard, statement of policy or interpretation of general
application which has institution-wide effect or which affects the
rights, privileges or interests of employees, students or citizens.
Any regulation, guideline, directive, standard, statement of policy
or interpretation of general application that meets this definition
is a rule for the purposes of this section.

(2) Regulations, guidelines or policies established for
individual units, divisions, departments or schools of the
institution, which deal solely with the internal management or
responsibilities of a single unit, division, department or school
or with academic curricular policies that do not constitute a
mission change for the institution, are excluded from this
subsection, except for the requirements relating to posting.

(3) The commission and council each shall promulgate a rule to
guide the development and approval of rules made by their
respective governing boards, including the governing boards of
Marshall University and West Virginia University. The rules
promulgated by the commission and council shall include, but are
not limited to, the following provisions which shall be included in
the rule on rules adopted by each governing board of a state
institution of higher education:

(A) A procedure to ensure that public notice is given and that
the right of interested parties to have a fair and adequate
opportunity to respond is protected, including providing for a
thirty-day public comment period prior to final adoption of a rule;

(B) Designation of a single location where all proposed and
approved rules, guidelines and other policy statements are posted
and can be accessed by the public;

(C) A procedure to maximize Internet access to all proposed
and approved rules, guidelines and other policy statements to the
extent technically and financially feasible; and

(D) A procedure for the governing board to follow in
submitting its rules for review and approval to the commission
and/or council, as appropriate, except the following conditions
apply for the governing boards of Marshall University and West
Virginia University:

(i) The governing boards shall submit rules for review and
comment to the commission.

(ii) The commission shall return to the governing board its
comments and suggestions within thirty days of receiving the rule.

(iii) If a governing board receives comments or suggestions on
a rule from the commission, it shall record these as part of the
minute record. The rule is not effective and may not be
implemented until the governing board holds a meeting and places on
the meeting agenda the comments it has received from the
commission.

(d) Nothing in this section requires that any rule
reclassified or transferred by the commission or the council under
this section be promulgated again under the procedures set out in
article three-a, chapter twenty-nine-a of this code unless the rule
is amended or modified.

(e) The commission and council each shall file with the
Legislative Oversight Commission on Education Accountability any
rule it proposes to promulgate, adopt, amend or repeal under the
authority of this article.

(f) The governing boards shall promulgate and adopt any rule
which they are required to adopt by this chapter or chapter
eighteen-c of this code no later than July 1, 2011 unless a later
date is specified. On and after this date:

(1) Any rule of a governing board which meets the definition
set out in subsection (c) of this section and which has not been
promulgated and adopted by formal vote of the appropriate governing
board is void and may not be enforced;

(2) Any authority granted by this code which inherently
requires the governing board to promulgate and adopt a rule is void
until the governing board complies with this section.

(g) Within thirty days of the adoption of a rule, including
repeal or amendment of an existing rule, and before the change is
implemented, a governing board shall furnish a copy of each rule
which it has adopted to the commission or the council,
respectively, for review and approval, except the governing boards
of Marshall University and West Virginia University are subject to
subsection (c) of this section.

(h) Annually, by October 1, each governing board shall file
with the commission or the council, as appropriate, a list of all
rules that were in effect for that institution on July 1 of that
year, including the most recent date on which each rule was
considered and adopted, amended or repealed by the governing board.
For all rules adopted, amended or repealed after the effective date
of this section, the list shall include a statement by the chair of
the governing board certifying that the governing board has
complied with this section when each listed rule was promulgated
and adopted.

ARTICLE 1B. HIGHER EDUCATION POLICY COMMISSION.

§18B-1B-4. Powers and duties of Higher Education Policy
Commission.

(a) The primary responsibility of the commission is to
develop, establish and implement policy that will achieve the
goals, objectives and priorities found in section one-a, article
one and article one-d of this chapter. The commission shall
exercise its authority and carry out its responsibilities in a
manner that is consistent and not in conflict with the powers and
duties assigned by law to the West Virginia Council for Community
and Technical College Education and the powers and duties assigned
to the governing boards. To that end, the commission has the
following powers and duties relating to the governing boards under
its jurisdiction:

(1) Develop, oversee and advance the public policy agenda
pursuant to article one-d of this chapter to address major
challenges facing the state, including, but not limited to, the
following:

(A) The goals, objectives and priorities established in this
chapter including specifically those goals, objectives and
priorities pertaining to the compacts created pursuant to section
seven, article one-d of this chapter; and

(B) Development and implementation of the master plan
described in section five, article one-d of this chapter for the
purpose of accomplishing the mandates of this section;

(2) Develop, oversee and advance the promulgation and
implementation of a financing rule for state institutions of higher
education under its jurisdiction. The rule shall meet the
following criteria:

(A) Provide for an adequate level of educational and general
funding for institutions pursuant to section five, article one-a of
this chapter;

(B) Serve to maintain institutional assets, including, but not
limited to, human and physical resources and eliminating deferred
maintenance; and

(C) Invest and provide incentives for achieving the priority
goals in the public policy agenda, including, but not limited to,
those found in section one-a, article one and article one-d of this
chapter;

(3) In collaboration with the council, create a policy
leadership structure capable of the following actions:

(A) Developing, building public consensus around and
sustaining attention to a long-range public policy agenda. In
developing the agenda, the commission and council shall seek input
from the Legislature and the Governor and specifically from the
state Board of Education and local school districts in order to
create the necessary linkages to assure smooth, effective and
seamless movement of students through the public education and
post-secondary education systems and to ensure that the needs of
public school courses and programs can be fulfilled by the
graduates produced and the programs offered;

(B) Ensuring that the governing boards carry out their duty
effectively to govern the individual institutions of higher
education; and

(C) Holding the governing boards and the higher education
systems as a whole accountable for accomplishing their missions and
implementing their compacts;

(4) Develop and adopt each compact for the governing boards
under its jurisdiction;

(5) Review and adopt the annual updates of the institutional
compacts;

(6) Serve as the accountability point to state policymakers:

(A) The Governor for implementation of the public policy
agenda; and

(B) The Legislature by maintaining a close working
relationship with the legislative leadership and the Legislative
Oversight Commission on Education Accountability;

(7) Jointly with the council, promulgate legislative rules
pursuant to article three-a, chapter twenty-nine-a of this code to
fulfill the purposes of section five, article one-a of this
chapter;

(8) Establish and implement a peer group for each institution
as described in section three, article one-a of this chapter;

(9) Establish and implement the benchmarks and performance
indicators necessary to measure institutional progress in achieving
state policy priorities and institutional missions pursuant to
section seven, article one-d of this chapter;

(10) Report to the Legislature and to the Legislative
Oversight Commission on Education Accountability annually during
the January interim meeting period on a date and at a time and
location to be determined by the President of the Senate and the
Speaker of the House of Delegates. The report shall address at
least the following:

(A) The performance of its system of higher education during
the previous fiscal year, including, but not limited to, progress
in meeting the goals, objectives and priorities set forth in
section one-a, article one and article one-d of this chapter and in
the commission’s master plan and institutional compacts;

(B) The commission’s priorities for new operating and capital
investments and the justification for the priority;

(C) Recommendations of the commission for statutory changes
necessary or expedient to achieve state goals, objectives and
priorities;

(11) Establish a formal process for identifying capital
investment needs and for determining priorities for these
investments for consideration by the Governor and the Legislature
as part of the appropriation request process pursuant to article
nineteen of this chapter.

(12) Develop standards and evaluate governing board requests
for capital project financing in accordance with article nineteen
of this chapter;

(13) Ensure that governing boards manage capital projects and
facilities needs effectively, including review and approval or
disapproval of capital projects, in accordance with article
nineteen of this chapter.

(14) Acquire legal services as considered necessary, including
representation of the commission, its, governing boards, employees
and officers before any court or administrative body,
notwithstanding any other provision of this code to the contrary.
The counsel may be employed either on a salaried basis or on a
reasonable fee basis. In addition, the commission may, but is not
required to, call upon the Attorney General for legal assistance
and representation as provided by law;

(15) Employ a Chancellor for Higher Education pursuant to
section five of this article;

(16) Employ other staff as necessary and appropriate to carry
out the duties and responsibilities of the commission and the
council, in accordance with article four of this chapter;

(17) Provide suitable offices in Kanawha County for the
chancellor, vice chancellors and other staff;

(18) Advise and consent in the appointment of the presidents
of the institutions of higher education under its jurisdiction
pursuant to section six of this article. The role of the
commission in approving an institutional president is to assure
through personal interview that the person selected understands and
is committed to achieving the goals, objectives and priorities set
forth in the compact, in section one-a, article one and article
one-d of this chapter;

(19) Approve the total compensation package from all sources
for presidents of institutions under its jurisdiction, as proposed
by the governing boards. The governing boards must obtain approval
from the commission of the total compensation package both when
institutional presidents are employed initially and afterward when
any change is made in the amount of the total compensation package;

(20) Establish and implement the policy of the state to assure
that parents and students have sufficient information at the
earliest possible age on which to base academic decisions about
what is required for students to be successful in college, other
post-secondary education and careers related, as far as possible,
to results from current assessment tools in use in West Virginia;

(21) Approve and implement a uniform standard jointly with the
council to determine which students shall be placed in remedial or
developmental courses. The standard shall be aligned with college
admission tests and assessment tools used in West Virginia and
shall be applied uniformly by the governing boards throughout the
public higher education system. The chancellors shall develop a
clear, concise explanation of the standard which they shall
communicate to the state Board of Education and the state
superintendent of Schools;

(22) Jointly with the council, develop and implement an
oversight plan to manage systemwide technology including, but not
limited to, the following:

(B) Increasing the delivery of instruction to nontraditional
students, to provide services to business and industry and increase
the management capabilities of the higher education system.

(C) Notwithstanding any other provision of law or this code to
the contrary, the council, commission and governing boards are not
subject to the jurisdiction of the Chief Technology Officer for any
purpose;

(23) Establish and implement policies and procedures to ensure
that a student may transfer and apply toward the requirements for
a bachelor’s degree the maximum number of credits earned at any
regionally accredited in-state or out-of-state community and
technical college with as few requirements to repeat courses or to
incur additional costs as are consistent with sound academic
policy;

(24) Establish and implement policies and procedures to ensure
that a student may transfer and apply toward the requirements for
a degree the maximum number of credits earned at any regionally
accredited in-state or out-of-state higher education institution
with as few requirements to repeat courses or to incur additional
costs as are consistent with sound academic policy;

(25) Establish and implement policies and procedures to ensure
that a student may transfer and apply toward the requirements for
a master’s degree the maximum number of credits earned at any
regionally accredited in-state or out-of-state higher education
institution with as few requirements to repeat courses or to incur
additional costs as are consistent with sound academic policy;

(26) Establish and implement policies and programs, in
cooperation with the council and the governing boards, through
which a student who has gained knowledge and skills through
employment, participation in education and training at vocational
schools or other education institutions, or Internet-based
education programs, may demonstrate by competency-based assessment
that he or she has the necessary knowledge and skills to be granted
academic credit or advanced placement standing toward the
requirements of an associate’s degree or a bachelor’s degree at a
state institution of higher education;

(27) Seek out and attend regional, national and international
meetings and forums on education and workforce development-related
topics as, in the commission’s discretion, are critical for the
performance of their duties as members, for the purpose of keeping
abreast of education trends and policies to aid it in developing
the policies for this state to meet the established education
goals, objectives and priorities pursuant to section one-a, article
one and article one-d of this chapter;

(28) Promulgate and implement a rule for higher education
governing boards and institutions to follow when considering
capital projects pursuant to article nineteen of this chapter;

(29) Consider and submit to the appropriate agencies of the
executive and legislative branches of state government an
appropriation request that reflects recommended appropriations for
the commission and the governing boards under its jurisdiction.
The commission shall submit as part of its appropriation request
the separate recommended appropriation request it received from the
council, both for the council and for the governing boards under
the council’s jurisdiction. The commission annually shall submit
the proposed allocations based on each institution’s progress
toward meeting the goals of its compact;

(30) The commission may assess institutions under its
jurisdiction, including Marshall University and West Virginia
University, for the payment of expenses of the commission or for
the funding of statewide higher education services, obligations or
initiatives related to the goals set forth for the provision of
public higher education in the state;

(31) Promulgate rules allocating reimbursement of
appropriations, if made available by the Legislature, to governing
boards for qualifying noncapital expenditures incurred in providing
services to students with physical, learning or severe sensory
disabilities;

(32) Make appointments to boards and commissions where this
code requires appointments from the State College System Board of
Directors or the University of West Virginia System Board of
Trustees which were abolished effective June 30, 2000, except in
those cases where the required appointment has a specific and
direct connection to the provision of community and technical
college education, the appointment shall be made by the council.
Notwithstanding any provisions of this code to the contrary, the
commission or the council may appoint one of its own members or any
other citizen of the state as its designee. The commission and
council shall appoint the total number of persons in the aggregate
required to be appointed by these previous governing boards;

(33) Pursuant to article three-a, chapter twenty-nine-a of
this code and section six, article one of this chapter, promulgate
rules necessary or expedient to fulfill the purposes of this
chapter. The commission and the council shall promulgate a uniform
joint legislative rule for the purposes of standardizing, as much
as possible, the administration of personnel matters among the
state institutions of higher education and implementing the
provisions of articles seven, eight, nine and nine-a of this
chapter;

(34) Determine when a joint rule among the governing boards
under its jurisdiction is necessary or required by law and, in
those instances, in consultation with the governing boards under
its jurisdiction, promulgate the joint rule;

(35) Promulgate and implement a rule jointly with the council
whereby course credit earned at a community and technical college
transfers for program credit at any other state institution of
higher education and is not limited to fulfilling a general
education requirement;

(36) By October 1, 2011, promulgate a rule pursuant to section
one, article ten of this chapter, establishing tuition and fee
policy for all governing boards under the jurisdiction of the
commission, including Marshall University and West Virginia
University. The rule shall include, but is not limited to, the
following:

(A) Comparisons with peer institutions;

(B) Differences among institutional missions;

(C) Strategies for promoting student access;

(D) Consideration of charges to out-of-state students; and

(E) Such other policies as the commission and council consider
appropriate;

(37) Implement general disease awareness initiatives to
educate parents and students, particularly dormitory residents,
about meningococcal meningitis; the potentially life-threatening
dangers of contracting the infection; behaviors and activities that
can increase risks; measures that can be taken to prevent contact
or infection; and potential benefits of vaccination. The
commission shall encourage governing boards that provide medical
care to students to provide access to the vaccine for those who
wish to receive it; and

(38) Notwithstanding any other provision of this code to the
contrary sell, lease, convey or otherwise dispose of all or part of
any real property that it owns, in accordance with article nineteen
of this chapter.

(b) In addition to the powers and duties listed in subsection
(a) of this section, the commission has the following general
powers and duties related to its role in developing, articulating
and overseeing the implementation of the public policy agenda:

(1) Planning and policy leadership, including a distinct and
visible role in setting the state’s policy agenda and in serving as
an agent of change;

(2) Policy analysis and research focused on issues affecting
the system as a whole or a geographical region thereof;

(3) Development and implementation of institutional mission
definitions, including use of incentive funds to influence
institutional behavior in ways that are consistent with public
priorities;

(4) Academic program review and approval for governing boards
under its jurisdiction. The review and approval includes use of
institutional missions as a template to judge the appropriateness
of both new and existing programs and the authority to implement
needed changes.

(A) The commission’s authority to review and approve academic
programs for either Marshall University or West Virginia University
is limited to programs that are proposed to be offered at a new
location not presently served by that institution;

(B) The commission shall approve or disapprove proposed
academic degree programs in those instances where approval is
required as soon as practicable, but in any case not later than six
months from the date the governing board makes an official request.
The commission may not withhold approval unreasonably.

(5) Distribution of funds appropriated to the commission,
including incentive and performance-based funds;

(6) Administration of state and federal student aid programs
under the supervision of the vice chancellor for administration,
including promulgation of rules necessary to administer those
programs;

(7) Serving as the agent to receive and disburse public funds
when a governmental entity requires designation of a statewide
higher education agency for this purpose;

(9) Jointly with the council, promulgating and implementing
rules for licensing and oversight for both public and private
degree-granting and nondegree-granting institutions that provide
post-secondary education courses or programs in the state. The
council has authority and responsibility for approval of all post-secondary courses or programs providing community and technical
college education as defined in section two, article one of this
chapter.

(10) Developing, implementing and overseeing statewide and
regional projects and initiatives related to providing post-secondary education at the baccalaureate level and above such as
those using funds from federal categorical programs or those using
incentive and performance-based funds from any source;

(11) Quality assurance that intersects with all other duties
of the commission particularly in the areas of research, data
collection and analysis, personnel administration, planning, policy
analysis, program review and approval, budgeting and information
and accountability systems; and

(12) Developing budgets and allocating resources for governing
boards under its jurisdiction:

(A) For all governing boards under its jurisdiction, except
the governing boards of Marshall University and West Virginia
University, the commission shall review institutional operating
budgets, review and approve capital budgets, and distribute
incentive and performance-based funds;

(B) For the governing boards of Marshall University and West
Virginia University, the commission shall distribute incentive and
performance-based funds and may review and comment upon the
institutional operating budgets and capital budgets. The
commission’s comments, if any, shall be made part of the governing
board’s minute record.

(c) In addition to the powers and duties provided in
subsections (a) and (b) of this section and any other powers and
duties assigned to it by law, the commission has other powers and
duties necessary or expedient to accomplish the purposes of this
article.

(d) The commission may withdraw specific powers of a governing
board under its jurisdiction for a period not to exceed two years,
if the commission determines that any of the following conditions
exist:

(1) The governing board has failed for two consecutive years
to develop or implement an institutional compact as required in
article one-d of this chapter;

(2) The commission has received information, substantiated by
independent audit, of significant mismanagement or failure to carry
out the powers and duties of the governing board according to state
law; or

(3) Other circumstances which, in the view of the commission,
severely limit the capacity of the governing board to exercise its
powers or carry out its duties and responsibilities.

The commission may not withdraw specific powers for a period
exceeding two years. During the withdrawal period, the commission
shall take all steps necessary to reestablish sound, stable and
responsible institutional governance.

§18B-1B-5. Employment of Chancellor for Higher Education; office; powers and duties generally; employment of Vice Chancellors and other staff.

(a) The commission, created by section one of this article,
shall employ a Chancellor for Higher Education who is the Chief
Executive Officer of the Commission and who serves at its will and
pleasure.

(b) The commission shall set the qualifications for the
position of Chancellor and, when a vacancy occurs, shall conduct a
thorough nationwide search for qualified candidates. A qualified
candidate is one who meets at least the following criteria:

(1) Possesses an excellent academic and administrative
background;

(2) Demonstrates strong communication skills;

(3) Has significant experience and an established national
reputation as a professional in the field of higher education;

(4) Is free of institutional or regional biases; and

(5) Holds or retains no other administrative position within
a system of higher education while employed as chancellor.

(c) The commission shall conduct written performance
evaluations of the chancellor annually and may offer the chancellor
a contract not to exceed three years. At the end of each contract
period, the commission shall review the evaluations and make a
determination by vote of its members on continuing employment and
compensation level.

(d) When filling a vacancy in the position of chancellor, the
commission shall enter into an initial employment contract for one
year with the candidate selected. At the end of the initial
contract period, and each contract period thereafter, the
commission shall review the evaluations and make a determination by
vote of its members on continuing employment and compensation level
for the chancellor.

(e) The commission sets the chancellor’s salary. The salary
may not exceed by more than twenty percent the average annual
salary of chief executive officers of state systems of higher
education in the states that comprise the membership of the
Southern Regional Education Board.

(f) The commission may employ a Vice Chancellor for Health
Sciences who serves at the will and pleasure of the commission.
The Vice Chancellor for Health Sciences shall coordinate the West
Virginia University School of Medicine, the Marshall University
School of Medicine and the West Virginia School of Osteopathic
Medicine and also shall provide assistance to the governing boards
on matters related to medical education and health sciences. The
Vice Chancellor for Health Sciences shall perform all duties
assigned by the chancellor, the commission and state law. In the
case of a vacancy in the office of Vice Chancellor of Health
Sciences, the duties assigned to this office by law are the
responsibility of the chancellor or a designee.

(g) The commission shall employ a Vice Chancellor for
Administration pursuant to section two, article four of this
chapter.

(h) The commission shall employ a Vice Chancellor for Human
Resources pursuant to section two-a, article four of this chapter.
The person serving as senior director of human resources by the
commission on January 1, 2011, is Vice Chancellor for Human
Resources on the effective date of this section. Additionally, the
commission shall employ a qualified generalist in the field of
human resources pursuant to section two-a, article four of this
chapter. The human resources generalist shall report to the Vice
Chancellor for Human Resources.

(i) The commission may employ a Vice Chancellor for State
Colleges who serves at the will and pleasure of the commission. At
a minimum, the Vice Chancellor for State Colleges shall perform the
following duties:

(1) Provide assistance to the commission, the chancellor and
the state colleges on matters related to or of interest and concern
to these institutions;

(2) Advise, assist and consult regularly with the presidents
and governing boards of each state college;

(3) Serve as an advocate and spokesperson for the state
colleges to represent them and to make their interests, views and
issues known to the chancellor, the commission and governmental
agencies;

(4) Perform all duties assigned by the chancellor, the
commission and state law.

In addition, the Vice Chancellor for State Colleges shall
provide staff assistance to the presidents and governing boards to
the extent practicable.

(j) On behalf of the commission, the chancellor may enter into
agreements with any state agency or political subdivision of the
state, any state institution of higher education or any other
person or entity to enlist staff assistance to implement the powers
and duties assigned by the commission or by state law.

(k) The chancellor is responsible for the daily operations of
the commission and has the following responsibilities relating to
the commission and the governing boards under its jurisdiction:

(1) To carry out policy and program directives of the
commission;

(2) To develop and submit annual reports on the implementation
plan to achieve the goals and objectives set forth in section one-a, article one and article one-d of this chapter, and in the
compacts;

(3) To prepare and submit to the commission for its approval
the proposed budget of the commission including the offices of the
chancellor and the vice chancellors;

(4) To assist the governing boards in developing rules,
subject to the provisions of section six, article one of this
chapter. Nothing in this chapter requires the rules of the
governing boards to be filed pursuant to the rule-making procedures
provided in article three-a, chapter twenty-nine-a of this code.
The commission and the council, either separately or jointly as
appropriate, are responsible for ensuring that any policy which is
required to be uniform across the institutions is applied in a
uniform manner;

(5) To perform all other duties and responsibilities assigned
by the commission or by state law.

(l) The chancellor shall be reimbursed for all actual and
necessary expenses incurred in the performance of all assigned
duties and responsibilities.

(m) The chancellor, with the commission, advises the
Legislature on matters of higher education in West Virginia. The
chancellor shall work closely with the Legislative Oversight
Commission on Education Accountability and with the elected
leadership of the state to ensure that they are fully informed
about higher education issues and that the commission fully
understands the goals, objectives and priorities for higher
education that the Legislature has established by law.

(n) The chancellor may design and develop for consideration by
the commission new statewide or region-wide initiatives in
accordance with the goals set forth in section one-a, article one
and article one-d of this chapter, and the public policy agenda
articulated by the commission. In those instances where the
initiatives to be proposed have a direct and specific impact or
connection to community and technical college education as well as
to baccalaureate and graduate education, the Chancellor for Higher
Education and the Chancellor for Community and Technical College
Education shall design and develop the initiatives jointly for
consideration by the commission and the council.

(o) To further the goals of cooperation and coordination
between the commission and the state Board of Education, the
chancellor serves as an ex officio, nonvoting member of the state
board. The chancellor shall work closely with members of the state
Board of Education and with the State Superintendent of Schools to
assure that the following goals are met:

(1) Development and implementation of a seamless kindergarten-through-college system of education; and

(2) Appropriate coordination of missions and programs.

ARTICLE 2A. INSTITUTIONAL BOARDS OF GOVERNORS.

§18B-2A-3. Supervision of governing boards; promulgation of rules.

(a) The governing boards are subject to the supervision of the
commission or the council, as appropriate, except in those
instances where specific statutory exceptions are granted by law to
the governing boards of Marshall University and West Virginia
University.(b) The governing boards of all state institutions
of higher education are subject to the provisions of law that
relate to the administration of personnel matters including,
specifically, articles seven, eight, nine and nine-a of this
chapter and to rules promulgated and adopted in accordance with
these provisions.

(c) The Chancellor for Higher Education and the Chancellor for
Community and Technical College Education, under the supervision of
their respective boards, are responsible for the coordination of
policies, purposes and rules of the governing boards and shall
provide for and facilitate sufficient interaction among the
governing boards and between the governing boards and the state
Board of Education to meet the goals and objectives provided in the
compacts and in section one-a, article one and article one-d of
this chapter.

(d) The governing boards and the state Board of Education
shall provide all information requested by the commission and the
council, whether the request is made separately or jointly, in an
appropriate format and in a timely manner.

§§18B-2A-4. Powers and duties of governing boards generally.

Each governing board separately has the following powers and
duties:

(a) Determine, control, supervise and manage the financial,
business and education policies and affairs of the state
institution of higher education under its jurisdiction;

(b) Develop a master plan for the institution under its
jurisdiction.

(1) The ultimate responsibility for developing and updating
each master plan at the institution resides with the governing
board, but the ultimate responsibility for approving the final
version of each master plan, including periodic updates, resides
with the commission or council, as appropriate.

(2) Each master plan shall include, but is not limited to, the
following:

(A) A detailed demonstration of how the master plan will be
used to meet the goals, objectives and priorities of the compact;

(B) A well-developed set of goals, objectives and priorities
outlining missions, degree offerings, resource requirements,
physical plant needs, personnel needs, enrollment levels and other
planning determinates and projections necessary in a plan to assure
that the needs of the institution’s area of responsibility for a
quality system of higher education are addressed;

(C) Documentation showing how the governing board involved the
commission or council, as appropriate, constituency groups,
clientele of the institution and the general public in the
development of all segments of the master plan.

(3) The plan shall be established for periods of not fewer
than three nor more than five years and shall be revised
periodically as necessary, including adding or deleting bachelor’s,
master’s and doctoral degree programs for all governing boards as
approved by the commission or council, respectively, except for the
governing boards of Marshall University and West Virginia
University only, the commission may review, but may not approve or
disapprove, additions or deletions of degree programs.

(c) Develop a ten-year campus development plan in accordance
with article nineteen of this chapter;

(d) Prescribe for the institution, under its jurisdiction, in
accordance with its master plan and compact, specific functions and
responsibilities to achieve the goals, objectives and priorities
established in articles one and one-d of this chapter to meet the
higher education needs of its area of responsibility and to avoid
unnecessary duplication;

(e) Direct the preparation of an appropriation request for the
institution under its jurisdiction, which relates directly to
missions, goals and projections found in the master plan and the
compact;

(f) Consider, revise and submit for review and approval to the
commission or council, as appropriate, an appropriation request on
behalf of the institution under its jurisdiction;

(g) Review, at least every five years, all academic programs
offered at the institution under its jurisdiction. The review
shall address the viability, adequacy and necessity of the programs
in relation to established state goals, objectives and priorities,
the master plan, the compact and the education and workforce needs
of its responsibility district. As a part of the review, each
governing board shall require the institution under its
jurisdiction to conduct periodic studies of its graduates and their
employers to determine placement patterns and the effectiveness of
the education experience. Where appropriate, these studies should
coincide with the studies required of many academic disciplines by
their accrediting bodies;

(h) Ensure that the sequence and availability of academic
programs and courses offered by the institution under its
jurisdiction is such that students have the maximum opportunity to
complete programs in the time frame normally associated with
program completion. Each governing board is responsible to see
that the needs of nontraditional college-age students are
appropriately addressed and, to the extent it is possible for the
individual governing board to control, to assure core course work
completed at the institution is transferable to any other state
institution of higher education for credit with the grade earned;

(i) Subject to article one-b of this chapter, approve the
teacher education programs offered in the institution under its
control. In order to permit graduates of teacher education
programs to receive a degree from a nationally accredited program
and in order to prevent expensive duplication of program
accreditation, the commission may select and use one nationally
recognized teacher education program accreditation standard as the
appropriate standard for program evaluation;

(j) Involve faculty, students and classified employees in
institution-level planning and decisionmaking when those groups are
affected;

(k) Subject to federal law and pursuant to articles seven,
eight, nine and nine-a of this chapter and to rules adopted by the
commission and the council, administer a system for the management
of personnel matters, including, but not limited to, discipline for
employees at the institution under its jurisdiction;

(l) Administer a system for hearing employee grievances and
appeals. Notwithstanding any other provision of this code to the
contrary, the procedure established in article two, chapter six-c
of this code is the exclusive mechanism for hearing prospective
employee grievances and appeals;

(m) Solicit and use or expend voluntary support, including
financial contributions and support services, for the institution
under its jurisdiction;

(n) Appoint a president for the institution under its
jurisdiction subject to section six, article one-b of this chapter;

(o) Conduct written performance evaluations of the president
pursuant to section six, article one-b of this chapter;

(p) Employ all faculty and staff at the institution under its
jurisdiction. The employees operate under the supervision of the
president, but are employees of the governing board;

(q) Submit to the commission or council, as appropriate, any
data or reports requested by the commission or council within the
time frame set by the commission or council;

(r) Enter into contracts or consortium agreements with the
public schools, private schools or private industry to provide
technical, vocational, college preparatory, remedial and customized
training courses at locations either on campuses of the state
institutions of higher education or at off-campus locations in the
institution’s responsibility district. To accomplish this goal,
the boards may share resources among the various groups in the
community;

(s) Provide and transfer funds and property to certain
corporations pursuant to section ten, article twelve of this
chapter;

(t) Delegate, with prescribed standards and limitations, the
part of its power and control over the business affairs of the
institution to the president in any case where it considers the
delegation necessary and prudent in order to enable the institution
to function in a proper and expeditious manner and to meet the
requirements of its master plan and compact. If a governing board
elects to delegate any of its power and control under this
subsection, it shall enter the delegation in the minutes of the
meeting when the decision was made and shall notify the commission
or council, as appropriate. Any delegation of power and control
may be rescinded by the appropriate governing board, the commission
or council, as appropriate, at any time, in whole or in part,
except that the commission may not revoke delegations of authority
made by the governing board of Marshall University or West Virginia
University;

(u) Unless changed by the commission or the council, as
appropriate, continue to abide by existing rules setting forth
standards for accepting advanced placement credit for the
institution under its jurisdiction. Individual departments at a
state institution of higher education, with approval of the faculty
senate, may require higher scores on the advanced placement test
than scores designated by the governing board when the credit is to
be used toward meeting a requirement of the core curriculum for a
major in that department;

(v) Consult, cooperate and coordinate with the State Treasurer
and the State Auditor to update as necessary and maintain an
efficient and cost-effective system for the financial management
and expenditure of appropriated and nonappropriated revenue at the
institution under its jurisdiction. The system shall ensure that
properly submitted requests for payment are paid on or before the
due date but, in any event, within fifteen days of receipt in the
State Auditor's office;

(w) In consultation with the appropriate chancellor and the
Secretary of the Department of Administration, develop, update as
necessary and maintain a plan to administer a consistent method of
conducting personnel transactions, including, but not limited to,
hiring, dismissal, promotions, changes in salary or compensation
and transfers at the institution under its jurisdiction. Each
personnel transaction shall be accompanied by the appropriate
standardized system or forms, as appropriate, which shall be
submitted to the respective governing board and the Department of
Administration:

(1) Not later than July 1, 2012, the Department of
Administration shall make available to each governing board the
option of using a standardized electronic system for these
personnel transactions.

(2) The Secretary of the Department of Administration may
suspend a governing board’s participation in the standardized
electronic system if he or she certifies to the Governor that the
governing board has failed repeatedly and substantially to comply
with the department’s policies for administering the electronic
system;

(x) Notwithstanding any other provision of this code to the
contrary, transfer funds from any account specifically appropriated
for its use to any corresponding line item in a general revenue
account at any agency or institution under its jurisdiction as long
as the transferred funds are used for the purposes appropriated;

(y) Transfer funds from appropriated special revenue accounts
for capital improvements under its jurisdiction to special revenue
accounts at agencies or institutions under its jurisdiction as long
as the transferred funds are used for the purposes appropriated in
accordance with article nineteen of this chapter;

(z) Notwithstanding any other provision of this code to the
contrary, acquire legal services that are necessary, including
representation of the governing board, its institution, employees
and officers before any court or administrative body. The counsel
may be employed either on a salaried basis or on a reasonable fee
basis. In addition, the governing board may, but is not required
to, call upon the Attorney General for legal assistance and
representation as provided by law; and

(aa) Contract and pay for disability insurance for a class or
classes of employees at a state institution of higher education
under its jurisdiction.

§18B-2A-8. Additional powers and duties of governing boards.

(a) The governing board of a state institution of higher
education is granted the additional powers and assigned the
associated duties pursuant to this section previously granted and
assigned to the governing boards of Marshall University and West
Virginia University, ifthe commission or council, as appropriate,
approves granting the powers and assigning the duties to that
governing board.(b) The powers and duties that may be
granted and assigned pursuant to this section are the following:(1) Sections five, six and seven, article three, chapter
twelve of this code;

(2) Section two, article three of this chapter;

(3) Sections five, six and seven, article four of this
chapter;

(4) Section seven, article five of this chapter; and

(5) Section six-a, article ten of this chapter.

(c) Additional powers and duties related to purchasing -- The
powers and duties granted and assigned to the governing boards of
Marshall University and West Virginia University by section four,
article five of this chapter are extended to the governing boards
of all other state institutions of higher education under the
following conditions:

(1) The commission and council shall conduct a study to
determine the capacity of each governing board under their
respective jurisdictions to implement the additional powers and
carry out the additional assigned duties related to purchasing;

(2) Based upon the findings of the study, the commission and
council shall approve the governing boards under their respective
jurisdictions that they determine have the capacity to exercise the
powers and carry out the assigned duties pursuant to section four,
article five of this chapter; and

(3) The commission and council shall report their findings
together with a list of the governing boards they each have
approved to the Legislative Oversight Commission on Education
Accountability by December 1, 2011.

(d) The commission and council have the power and the duty to
monitor participation and provide technical assistance, as
requested or required, to governing boards under their respective
jurisdictions and to limit or rescind exercise of the powers, in
whole or in part, granted by this section to a governing board if,
in the sole determination of the commission or council, as
appropriate, that action is warranted.

ARTICLE 2B. WEST VIRGINIA COUNCIL FOR COMMUNITY AND TECHNICAL
COLLEGE EDUCATION.

§18B-2B-3. West Virginia Council for Community and Technical
College Education; supervision of chancellor;
chief executive officer.

(a) There is continued the West Virginia Council for Community
and Technical College Education. The council has all the powers
and duties assigned by law to the joint commission for vocational--technical-occupational education prior to July 1, 2001, and all
other powers and duties assigned by law.

(b) The council shall employ a chancellor for community and
technical college education. The chancellor serves as chief
executive officer of the council at the will and pleasure of the
council. The chancellor shall be compensated at a level set by the
council not to exceed eighty percent of the average annual salary
of chief executive officers of the state systems of community and
technical colleges in the states that comprise the membership of
the Southern Regional Education Board.

(c) The council shall conduct written performance evaluations
of the chancellor annually and may offer the chancellor a contract
not to exceed three years. At the end of each contract period, the
council shall review the evaluations and make a determination by
vote of its members on continuing employment and level of
compensation.

(d) When a vacancy occurs in the position of chancellor, the
council shall enter into an initial employment contract for one
year with the candidate selected to fill the vacancy. At the end
of the initial period, and each contract period thereafter, the
council shall review the evaluations and make a determination by
vote of its members on continuing employment and compensation level
for the chancellor.

(e) The individual who was serving as Vice Chancellor for
Community and Technical College Education and Workforce Development
and who became chancellor effective March 13, 2004, maintains all
benefits of employment held, accrued and afforded as the Vice
Chancellor for Community and Technical College Education and
Workforce Development prior to March 13, 2004, These benefits
include, but are not limited to, retirement benefits, continued
membership in the same retirement system, insurance coverage and
sick and annual leave. For the purposes of leave conversion
established in section thirteen, article sixteen, chapter five of
this code, the chancellor is not a new employee and the prohibition
on conversion does not apply if the chancellor was eligible for
leave conversion while serving as vice chancellor.

ARTICLE 3. ADDITIONAL POWERS AND DUTIES OF GOVERNING BOARDS.

§18B-3-1. Legislative findings, purpose; intent; definition.

(a) The Legislature finds that an effective and efficient
system of doctoral-level education is vital to providing for the
economic well-being of the citizens of West Virginia and for
accomplishing established state goals and objectives. As the only
research and doctoral-granting public universities in the state,
Marshall University and West Virginia University are major assets
to the citizens of West Virginia and must be an integral part of
any plan to strengthen and expand the economy.

(b) The Legislature further finds that these two institutions
must compete in both a national and global environment that is
rapidly changing, while they continue to provide high quality
education that is both affordable and accessible and remain
accountable to the people of West Virginia for the most efficient
and effective use of scarce resources.

(c) The Legislature further finds that Marshall University and
West Virginia University, under the direction of their respective
governing boards, may manage operational governance of their
institutions in an efficient and accountable manner and may best
fulfill their public missions when their governing boards are given
flexibility and autonomy sufficient to meet state goals, objectives
and priorities established in this article, and in section one-a,
article one and article one-d of this chapter.

(d) Therefore, the purposes of this article include, but are
not limited to, the following:

(1) Enhancing the competitive position of Marshall University
and West Virginia University in the current environment for
research and development;

(2) Providing the governing boards of these institutions with
operational flexibility and autonomy in certain areas, including
tools to promote economic development in West Virginia;

(3) Encouraging the development of research expertise in areas
directly beneficial to the state;

(4) Focusing the attention and resources of the governing
boards on state goals, objectives and priorities to enhance the
competitive position of the state and the economic, social and
cultural well-being of its citizens; and

(5) Providing additional autonomy and operational flexibility
and assigning certain additional responsibilities to governing
boards of other state institutions of higher education.

(e) The governing boards of Marshall University and West
Virginia University each have the power and the obligation to
perform functions, tasks and duties as prescribed by law and to
exercise their authority and carry out their responsibilities in a
manner that is consistent with and not in conflict with the powers
and duties assigned by law to the council and the commission.

(f) While the governing boards may choose to delegate powers
and duties to their respective presidents pursuant to subsection
(s), section four, article two-a of this chapter, ultimately, it is
they who are accountable to the Legislature, the Governor and the
citizens of West Virginia for meeting the established state goals,
objectives and priorities set forth in this article, and in section
one-a, article one and article one-d of this chapter. Therefore,
grants of operational flexibility and autonomy are made directly to
the governing boards and are not grants of operational flexibility
and autonomy to the president of an institution.

§18B-3-3. Relationship of governing boards to the commission and
the council.

(a) Relationship between the commission and the governing
boards. --

(1) The commission functions as a state-level coordinating
board exercising its powers and duties in relation to the governing
boards as prescribed by law;

(2) The primary responsibility of the commission is to work
collaboratively with the governing boards to research, develop and
propose policy that will achieve the established goals, objectives,
and priorities set forth in this chapter and chapter eighteen-c of
this code; and

(3) The commission has specific powers and duties which
include, but are not limited to, the following:

(A) Advocating for public higher education at the state level;

(B) Jointly with the council, implementing the classification
and compensation system established by articles seven, eight, nine
and nine-a of this chapter; and

(C) Collecting and analyzing data, researching, developing
recommendations, and advising the Legislature and the Governor on
broad policy initiatives, use of incentive funding, national and
regional trends in higher education and issues of resource
allocation involving multiple governing boards.

(b) Relationship between the council and the governing boards.
-- (1) The council maintains all powers and duties assigned to it
by law or rule relating to community and technical colleges as
defined in section two, article one of this chapter;

(2) The council functions as a coordinating board for the
institutions under its jurisdiction which make up the statewide
network of independently-accredited community and technical
colleges. In addition to recognizing the authority assigned by law
to the council and abiding by rules duly promulgated by the council
relating to the community and technical colleges, the governing
boards shall exercise their authority and carry out their
responsibilities in a manner that is consistent with and
complementary to the powers and duties assigned by law or rule to
the community and technical colleges or to the council;

(c) The governing boards shall work collaboratively with the
commission, the council and their staff to provide all information
requested by the commission or the council in an appropriate format
and in a timely manner.

§18B-3-4. Duty of governing boards to address state priorities.

The expertise of faculty and graduate students at state
institutions of higher education is important to every citizen of
this state. It is the responsibility of the governing boards to
channel this expertise into research and analysis that will yield
measurable benefits to the citizens of West Virginia. Therefore,
in addition to the goals, objectives and priorities established in
section one-a, article one and article one-d of this chapter and
goals established elsewhere in this code, it is the responsibility
of the governing boards to concentrate attention and resources on
certain specific state priorities that have a direct, positive
impact on the economic, social and cultural well-being of the
people of West Virginia.

(a) Priorities for Marshall University and West Virginia
University in collaboration:

(2) Performing professional development-related research and
coordinating the delivery of professional development to educators
in the public schools of the state pursuant to article two, chapter
eighteen of this code; and

(3) Building subject matter expertise in public education
finance, including mastery of the theories and concepts used in
developing formulas to provide state-level financial support to
public education.

(b) The Legislature may, but is not required to, make
additional appropriations for the benefit of Marshall University
and West Virginia University to assist them in fulfilling the
purposes set forth in subsection (a) of this section.

(c) Additional priorities for governing boards:

(d) In addition to the priorities established in subsection
(a) of this section, each governing board under the jurisdiction of
the commission shall focus resources and attention on improving its
graduation rate for full-time undergraduate students as a specific
institutional priority. The graduation rate is measured as a
percentage of the number of undergraduate students who obtain a
degree within six years of the date of enrollment as full-time
freshmen.

(1) By July 1, 2015, the governing board of each state
institution of higher education under the jurisdiction of the
commission, including the governing boards of Marshall University
and West Virginia University, shall attain a graduation rate for
full-time undergraduate students that equals or exceeds the
graduation rate of its peers established pursuant to section three,
article one-a of this chapter.

(2) The commission shall monitor and report annually by
December 1, to the Legislative Oversight Commission on Education
Accountability on the progress of the governing boards toward
meeting the goals set forth in this subsection.

ARTICLE 4. GENERAL ADMINISTRATION.

§18B-4-1. Employment of chancellors; designation of staff;
offices.

(a) The council and commission each shall employ a chancellor
to assist in the performance of their respective duties and
responsibilities subject to the following conditions:

(1) Each chancellor serves at the will and pleasure of the
hiring body.

(2) Neither chancellor may hold or retain any other
administrative position within the system of higher education while
employed as chancellor.

(3) Each chancellor shall carry out the directives of the body
by whom employed and shall collaborate with that body in developing
policy options.

(4) The commission is responsible to the council and the
Chancellor for Community and Technical College Education for
providing services in areas essential to exercising the powers and
duties assigned to the council by law. The commission may not
charge the council any fee for the provision of these essential
services. The service areas include, but are not limited to, legal
services, research, technology, computing, finance and facilities,
academic affairs, telecommunications, human resources, student
services and any other general areas the council considers to be
essential to the exercise of its legal authority. The services are
provided under the general supervision of the Vice Chancellor for
Administration.

(5) For the purpose of developing or evaluating policy
options, the chancellors may request the assistance of the
presidents and staff employed by the governing boards under their
respective jurisdictions.

(b) In addition to the staff positions designated in
subdivision (4), subsection (a) of this section, and section five,
article one-b of this chapter, the Vice Chancellor for
Administration, employed pursuant to section two of this article,
serves the offices of the chancellors to discharge jointly the
duties and responsibilities of the council and commission.

(c) Suitable offices for the Vice Chancellor of
Administration, the Vice Chancellor for Human Resources and other
staff shall be provided in Kanawha County.

(a) By and with the advice and consent of the council for
community and technical college education, the commission shall
employ a Vice Chancellor for Human Resources who may not be
dismissed without the consent of the council. The person employed
as senior director of human resources by the commission on January
1, 2011, becomes the Vice Chancellor for Human Resources on the
effective date of this section. Thereafter, any vacancy occurring
in this position shall be filled in accordance with this section.

(b) The successful candidate for the position of vice
chancellor provides vision, leadership and direction to ensure the
human resources system for employees of the commission, council and
governing boards is effective, efficient and aligned with industry
best practices. The successful candidate possesses the following
minimum qualifications:

(c) The Vice Chancellor, in consultation with the chancellors,
performs functions, tasks and responsibilities necessary to carry
out the policy directives of the council and commission and any
other duties prescribed by law. The Vice Chancellor oversees and
monitors all issues related to the personnel system for higher
education employees and provides technical support to organizations
as directed or requested on all issues related to the design,
development, implementation and administration of the personnel
system established by this chapter and by duly promulgated rules.

(d) The Vice Chancellor supervises employees at the commission
offices involved in human resources functions, including the
professional, administrative, clerical and other employees
necessary to carry out assigned powers and duties. In consultation
with the Vice Chancellor for Administration and the chancellors,
the Vice Chancellor shall delineate staff responsibilities as
considered desirable and appropriate.

(e) The Vice Chancellor provides support to the chancellors
and organizations on a highly diverse range of issues including
assisting them to develop a culture of constant improvement in a
rapidly changing, complex market. Duties of the position include,
but are not limited to, the following:

(2) Chairing the Job Classification Committee and the
Compensation Planning and Review Committee established by sections
four, and five, article nine-a of this chapter.

(3) Assuming responsibility for coordinating compensation and
benefits programs for all employees, including designing these
programs, and for supporting each higher education organization in
implementing the programs;

(5) Maintaining the classification system by providing for
regular review of jobs to determine whether the current job
description accurately reflects the duties and responsibilities and
whether the job is properly classified or needs to be modified or
deleted. Every job shall be reviewed at least once within each
five-year period;

(6) Ensuring that market comparison studies are conducted for
each class of employees and providing a report annually to each
organization on the status of relative market equity among the
employee classifications.

(7) Carrying out the following duties related to training and
development:

(A) Analyzing and determining training needs of organization
employees and formulating and developing plans, procedures and
programs to meet specific training needs and problems. Successful
completion of these tasks requires the vice chancellor to work
closely with and communicate regularly with the training and
development coordinators employed by each organization;

(B) Developing, constructing, maintaining and revising
training manuals and training aids or supervising development of
these materials by outside suppliers;

(D) Coordinating participation by all employees in training
programs developed internally or provided by outside contractors;
and

(E) Administering and analyzing an annual training and
development needs survey. The survey may coincide with the
completion of the annual performance review process.

(8) Conducting performance reviews of personnel who administer
human resources functions at each organization in relation to best
practices pursuant to articles seven, eight, nine and nine-a of
this chapter and rules of the commission and council. Human
resources personnel at each organization shall be evaluated at
least once within each three-year period. The Vice Chancellor
shall analyze the results of these evaluations and target training
and professional development to identified areas of deficiency.

(f) To assist in performing the duties of vice chancellor, the
commission, with the consent of the council, shall employ a
generalist/manager who is well qualified in the field of human
resources. The position reports to the Vice Chancellor for Human
resources and shall be filled on a permanent basis by September 1,
2011. The successful candidate is responsible for a wide range of
human resources management, reporting and development activities
and works collaboratively with governing boards and their employees
at all levels.

ARTICLE 5. HIGHER EDUCATION BUDGETS AND EXPENDITURES.

§18B-5-9. Higher education fiscal responsibility.

(a) The governing boards shall ensure the fiscal integrity of
their operations using best business and management practices.

(1) The practices include at least the following:

(A) Complying with Generally Accepted Accounting Principles of
the Governmental Accounting Standards Board (GAAP); and the
Generally Accepted Government Auditing Standards of the Government
Accountability Office (GAGAS);

(B) Operating without material weakness in internal controls
as defined by GAAP, GAGAS and, where applicable, the Office of
Management and Budget (OMB) Circular A-133;

(D) Preparing annual audited financial statements as
coordinated and directed by the commission and council,
respectively, and as the commission requires to complete the higher
education fund audit;

(E) Maintaining quarterly financial statements certified by
the chief financial officer of the institution; and

(F) Implementing best practices from Sarbanes-Oxley, or
adopting the applicable tenets of Sarbanes-Oxley as best practices.

(2) Each governing board and any affiliated research
corporation shall comply with the OMB Circular A-133 annual grant
award audit requirements and are exempt from section fourteen,
article four, chapter twelve of this code.

(3) Within thirty days of the completion of the financial
audit report, the governing boards shall furnish to the commission
or council, respectively, copies of the annual audited financial
statements.

(b) The commission and council, each, shall ensure the fiscal
integrity of any electronic process conducted at its offices and by
the governing boards under its respective jurisdiction by applying
best business and management practices.

(c) To the maximum extent practicable, each higher education
organization shall provide for its employees to receive their wages
via electronic transfer or direct deposit.

(d) Notwithstanding any other provision of this code to the
contrary, a purchasing card may be used by the council, the
commission or a governing board of a state institution of higher
education to make any payment authorized by the Auditor, including
regular routine payments and travel and emergency payments.
Payments are set at an amount to be determined by the Auditor.

(1) Subject to approval of the Auditor, an emergency payment
and a routine, regularly scheduled payment, including, but not
limited to, utility payments, contracts and real property rental
fees, may exceed this limit by an amount to be determined by the
Auditor.

(2) The council, commission and a governing board of a state
institution of higher education may use a purchasing card for
travel expenses directly related to the job duties of the traveling
employee. Where approved by the Auditor, the expenses may exceed
$5000 by an amount to be determined by the Auditor. Traveling
expenses may include registration fees and airline and other
transportation reservations, if approved by the president of the
institution. Traveling expenses may include purchases of fuel and
food.

(3) The commission, council, and governing boards each shall
maintain one purchasing card for use only in a situation declared
an emergency by the appropriate chancellor or the institution’s
president. Emergencies may include, but are not limited to,
partial or total destruction of a facility; loss of a critical
component of utility infrastructure; heating, ventilation or air
condition failure in an essential academic building; loss of campus
road, parking lot or campus entrance; or a local, regional, or
national emergency situation that has a direct impact on the
campus.

(e) Notwithstanding section ten-f, article three, chapter
twelve of this code, or any other provision of this code or law to
the contrary, the Auditor shall accept any receiving report
submitted in a format utilizing electronic media. The Auditor
shall conduct any audit or investigation of the council, commission
or governing board at its own expense and at no cost to the
council, commission or governing board.

(f) The council and the commission each shall maintain a rule
in accordance with article three-a, chapter twenty-nine-a of this
code. The rule shall provide for governing boards individually or
cooperatively to maximize their use of any of the followingpurchasing practices that are determined to provide a financial
advantage:

(1) Bulk purchasing;

(2) Reverse bidding;

(3) Electronic marketplaces; and

(4) Electronic remitting.

(g) Each governing board may establish a consortium with at
least one other governing board, in the most cost-efficient manner
feasible, to consolidate the following operations and student
services:

(1) Payroll operations;

(2) Human resources operations;

(3) Warehousing operations;

(4) Financial transactions;

(5) Student financial aid application, processing and
disbursement;

(6) Standard and bulk purchasing; and

(7) Any other operation or service appropriate for
consolidation as determined by the council or commission.

(h) A governing board may charge a fee to the governing board
of each institution for which it provides a service or performs an
operation. The fee rate shall be in the best interest of both the
institution being served and the governing board providing the
service.

(i) A governing board may provide the services authorized by
this section for the benefit of any governmental body or public or
private institution.

(j) Each governing board shall strive to minimize its number
of low-enrollment sections of introductory courses. To the maximum
extent practicable, governing boards shall use distance learning to
consolidate the course sections. The council and commission shall
report the progress of reductions as requested by the Legislative
Oversight Commission on Education Accountability.

(k) A governing board shall use its natural resources and
alternative fuel resources to the maximum extent feasible. The
governing board:

(1) May supply the resources for its own use and for use by
the governing board of any other institution;

(2) May supply the resources to the general public at fair
market value;

(3) Shall maximize all federal or grant funds available for
research regarding alternative energy sources; and

(4) May develop research parks to further the purpose of this
section and to expand the economic development opportunities in the
state.

(l) Any cost-savings realized or fee procured or retained by
a governing board pursuant to this section is retained by the
governing board.

(m) Each governing board is authorized, but not required, to
implement subsections (f), (g) and (h) of this section.

If a governing board elects to implement subsection (g) of
this section, the following conditions apply:

(1) The governing board makes the determination regarding any
additional operation or service which is appropriate for
consolidation without input from the council or commission;

(2) The governing board sets the fee charged to the governing
board of the institution for which it provides a service or
performs an operation. The fee rate shall be in the best interest
of both the institution being served and the governing board
providing the service and is not subject to approval by the council
or commission; and

(3) The governing board may not implement this subdivision in
a manner which supercedes the requirements established in section
twelve, article three-c of this chapter.

(n) The governing boards of Marshall University and West
Virginia University, respectively, each shall promulgate a rule on
purchasing procedures in accordance with section six, article one
of this chapter.

ARTICLE 7. PERSONNEL GENERALLY.

§18B-7-1. Legislative intent and purpose.

(a) The intent of the Legislature in enacting this article and
articles eight, nine and nine-a of this chapter is to establish a
state-wide, integrated human resources structure capable of, but
not limited to, meeting the following objectives:

(1) Providing benefits to the citizens of the State of West
Virginia by supporting the public policy agenda as articulated by
state policymakers;

(2) Assuring fiscal responsibility by making the best use of
scarce resources;

(9) Implementing best practices throughout the state higher
education system.

(b) To accomplish these goals, the Legislature encourages
organizations to pursue a human resources strategy which provides
monetary and nonmonetary returns to employees in exchange for their
time, talents and efforts to meet articulated goals, objectives and
priorities of the state, the commission and council, and the
organization. The system should maximize the recruitment,
motivation and retention of highly qualified employees, ensure
satisfaction and engagement of employees with their jobs, ensure
job performance and achieve desired results.

§18B-7-2. Definitions.

For the purposes of this article and articles eight, nine and
nine-a of this chapter, the following words have the meanings
ascribed to them unless the context clearly indicates a different
meaning:

(a) “Benefits” means programs that an employer uses to
supplement the cash compensation of employees and includes health
and welfare plans, retirement plans, pay for time not worked and
other employee perquisites.

(b) “Compensation” means cash provided by an employer to an
employee for services rendered.

(c) “Compensatory time” and “compensatory time off” mean hours
during which the employee is not working, which are not counted as
hours worked during the applicable work week or other work period
for purposes of overtime compensation and for which the employee is
compensated at the employee's regular rate of pay.

(d) “Employee classification” or “employee class” means those
employees designated as classified employees; nonclassified
employees, including presidents, chief executives and top level
administrators and faculty as these terms are defined in this
article and articles eight, nine and nine-a of this chapter.

(e) “Health and welfare benefit plan” means an arrangement
which provides any of the following: Medical, dental, visual,
psychiatric or long-term health care, life insurance, accidental
death or dismemberment benefits, disability benefits or comparable
benefits.

(f) “Relative market equity” means the relative market status
of each employee classification at an organization falls within
five percent of all other employee classifications within the
organization for the preceding three-year period.

(g) “Relative market status” means the calculated relationship
between the average salary of each employee classification and its
peer group.

(a) Definitions for terms used in this section have the
meanings ascribed to them in section two, article one of this
chapter and section two, article nine of this chapter, except that,
unless clearly noted otherwise, this section applies only to an
employee:

(1) Who is classified and whose employment, if continued,
accumulates to a minimum total of one thousand forty hours during
a calendar year and extends over at least nine months of a calendar
year; or

(2) Who is transferred involuntarily to a position in
nonclassified status for which he or she did not apply. Any
classified employee involuntarily transferred to a position in
nonclassified status may exercise the rights set out in this
section only for positions equivalent to or lower than the last job
class the employee held.

(b) All decisions by an organization or its agents concerning
reductions in workforce of full-time classified employees, whether
by temporary furlough or permanent termination, shall be made in
accordance with this section.

(1) For layoffs by classification for reason of lack of funds
or work, or abolition of position or material changes in duties or
organization and for recall of employees laid off, consideration
shall be given to an employee's seniority as measured by permanent
employment in the service of the state system of higher education.
(2) If the organization desires to lay off a more senior
employee, it shall demonstrate that the senior employee cannot
perform any other job duties held by less senior employees of that
organization in the same job class or any other equivalent or lower
job class for which the senior employee is qualified. If an
employee refuses to accept a position in a lower job class, the
employee retains all rights of recall provided in this section.

(3) If two or more employees accumulate identical seniority,
the priority is determined by a random selection system established
by the employees and approved by the organization.

(c) Each employee laid off during a furlough or reduction in
workforce is placed upon a preferred recall list and is recalled to
employment by the organization on the basis of seniority.

(1) An employee's listing with an organization remains active
for a period of one calendar year from the date of termination or
furlough or from the date of the most recent renewal. If an
employee fails to renew the listing with the organization, the
employee's name may be removed from the list.

(2) An employee placed upon the preferred recall list shall be
recalled to any position opening by the organization within the
classifications in which the employee had previously been employed
or to any lateral position for which the employee is qualified.

(3) An employee on the preferred recall list does not forfeit
the right to recall by the organization if compelling reasons
require the employee to refuse an offer of reemployment by the
organization.

(d) The organization shall notify all employees maintaining
active listings on the preferred recall list of all position
openings that periodically exist.

(1) The notice shall be sent by certified mail to the last
known address of the employee. It is the duty of each employee
listed to notify the organization of any change in address and to
keep the listing with the organization current.

(2) A position opening may not be filled by the organization,
whether temporary or permanent, until all employees on the
preferred recall list have been properly notified of existing
vacancies and have been given an opportunity to accept
reemployment.

(e) A nonexempt classified employee is one to whom the
provisions of the federal Fair Labor Standards Act, as amended,
apply. A nonexempt classified employee, who applies and meets the
minimum qualifications for a nonexempt job opening at the
organization where currently employed, whether the job is a lateral
transfer or a promotion, shall be transferred or promoted before a
new person is hired.

(1) This subsection does not apply if the hiring is affected
by mandates in affirmative action plans or the requirements of
Public Law 101-336, the Americans with Disabilities Act.

(2) This subsection applies to any nonexempt classified
employee, including one who has not accumulated a minimum total of
one thousand forty hours during the calendar year and one whose
contract does not extend over at least nine months of a calendar
year.

(3) If more than one qualified, nonexempt classified employee
applies, the best-qualified nonexempt classified employee is
awarded the position. In instances where the classified employees
are equally qualified, the nonexempt classified employee with the
greatest amount of continuous seniority at that organization is
awarded the position.

(f) In addition to any other information required,
applications for employment by personnel governed by this section
shall include each applicant's social security number.

(g) Regardless of the level of seniority for an employee, for
the purposes of this section in the case of a reduction in force:

(1) An employee at an organization under the jurisdiction of
the council may not displace an employee of an organization under
the jurisdiction of the commission.

(2) An employee at an organization under the jurisdiction of
the commission may not displace an employee of an organization
under the jurisdiction of the council.

(3) An employee performing a dual service for a formerly
administratively linked community and technical college and a
former sponsoring institution under the jurisdiction of the
commission is an employee of the institution under the jurisdiction
of the commission if that institution receives a fee from the
community and technical college for the service performed by the
employee.

§18B-7-4. Supplemental health and welfare benefit plans.

(a) An organization may contract for supplemental health and
welfare benefit plans for any or all of its employees in addition
to the benefits the employees otherwise receive.

(b) An organization may make additional periodic deductions
from the salary payments due employees in the amount they are
required to contribute for any supplemental health and welfare
plan.

(a) Any reference in this code to the “additional retirement
plan” relating to state higher education employees, means the
“higher education retirement plan” provided in this section. Any
state higher education employee participating in a retirement plan
upon the effective date of this section continues to participate in
that plan and may not elect to participate in any other state
retirement plan. Any retirement plan continues to be governed by
the provisions of law applicable on the effective date of this
section.

(b) The commission, on behalf of the council, governing boards
and itself, shall contract for a retirement plan for their
employees, to be known as the “Higher Education Retirement Plan”.
The commission, council and governing boards shall make periodic
deductions from the salary payments due employees in the amount
they are required to contribute to the Higher Education Retirement
Plan, which deductions shall be six percent.

(c) The commission, council and governing boards may contract
for supplemental retirement plans for any or all of their employees
to supplement the benefits employees otherwise receive. The
commission, council and governing boards may make additional
periodic deductions from the salary payments due the employees in
the amount they are required to contribute for the supplemental
retirement plan.

(d) An organization, by way of additional compensation to
their employees, shall pay an amount, which, at a minimum, equals
the contributions of the employees into the higher education
retirement plan from funds appropriated to the commission, council
or governing board for personal services.

(e) As part of an overall compensation plan, the commission,
council or a governing board, each at its sole discretion, may
increase its contributions to any employee retirement plan to an
amount that exceeds the contributions of employees.

(f) Each participating employee has a full and immediate
vested interest in the retirement and death benefits accrued from
all the moneys paid into the Higher Education Retirement Plan or a
supplemental retirement plan for his or her benefit. Upon proper
requisition of a governing board, the commission or council, the
Auditor periodically shall issue a warrant, payable as specified in
the requisition, for the total contributions so withheld from the
salaries of all participating employees and for the matching funds
of the commission, council or governing board.

(g) Any person whose employment commences on or after July 1,
1991, and who is eligible to participate in the Higher Education
Retirement Plan, shall participate in that plan and is not eligible
to participate in any other state retirement system: Provided, That
the foregoing provision does not apply to a person designated as a
21st Century Learner Fellow pursuant to section eleven, article
three, chapter eighteen-a of this code. The additional retirement
plan contracted for by the governing boards prior to July 1, 1991,
remains in effect unless changed by the commission. Nothing in
this section considers employees of the council or governing boards
as employees of the commission, nor is the commission responsible
or liable for retirement benefits contracted by, or on behalf of,
the council or governing boards.

§18B-7-6. Continuing education and professional development.

(a) Each higher education organization shall establish and
operate an employee continuing education and development program
under a joint rule or rules promulgated by the commission and
council in accordance with article three-a, chapter twenty-nine-a
of this code. Funds allocated or made available for employee
continuing education and development may be used to compensate and
pay expenses for faculty or classified employees pursuing
additional academic study or training to equip themselves better
for their duties.

The rules shall encourage continuing education and staff
development and shall require that employees be selected on a
nonpartisan basis using fair and meaningful criteria which afford
all employees opportunities to enhance their skills. These rules
also may include reasonable provisions for the continuation or
return of any faculty or classified employee receiving the benefits
of the education or training, or for reimbursement by the state for
expenditures incurred on behalf of the faculty member or classified
employee.

(b) Subject to legislative appropriation therefor, the
commission and council shall provide additional, regular, training
and professional development for employees engaged in human
resources-related activities at all organizations. The training
and professional development:

(1) Shall be mandatory with appropriate consideration given to
limiting travel demands on employees; and

(2) Shall be in addition to and may not supplant the training
and professional development regularly provided to any class of
employees by each organization prior to the effective date of this
section.

§18B-7-7. Employment practices.

(a) Each governing board, with the advice and assistance of
the staff council, shall promulgate and adopt a rule regarding the
role of part-time classified employees. The rule shall discourage
the hiring of part-time employees solely to avoid the payment of
benefits or in lieu of full-time employees and shall provide all
qualified classified employees who hold nine-month or ten-month
contracts with the opportunity to accept part-time or full-time
summer employment before new persons are hired for the part-time or
full-time employment.

(b) Each governing board, with the advice and assistance of
the staff councils and other groups representing classified
employees, shall promulgate and adopt a rule in accordance with
section six, article one of this chapter that discourages
temporary, nonemergency, institutionally-imposed changes in an
employee's work schedule; that maintains reasonable continuity in
working schedules and conditions for employees; and that requires
institutions to consider feasible and innovative ways to use the
institution's classified employees most efficiently. These
innovations may include, but are not limited to, flexibility in
employee scheduling, job-sharing and four-day work weeks.

§18B-7-8. Reporting.

(a) Implementation reports. --

For the fiscal years commencing on July 1, 2011, and July 1,
2012, the commission and council jointly shall report to the
Legislative Oversight Commission on Education Accountability once
during each six-month period on their progress in designing,
developing, implementing and administering the personnel
classification and compensation system established by this article
and articles eight, nine and nine-a of this chapter. The initial
report is due December 1, 2011, and shall include, but is not
limited to, the following information:

(1) A summary of findings generated by the human resources
review conducted pursuant to section nine of this article;

(2) Documentation of professional staffing changes made in
compliance with section two-a, article four of this chapter;

(3) A systematic plan, including a time line, for designing,
developing, and implementing the classification and compensation
system contained in this article and articles eight, nine and nine-a of this chapter;

(4) An explanation of the research design and time line for
completing studies identified in section sixteen of this article;

(5) An assessment of progress made by the governing boards
toward achieving full funding of the temporary classified
employees' salary schedule pursuant to section three, article nine
of this chapter;

(6) Detailed data disaggregated by organization and employee
category or classification, comparing funding for salaries of
faculty, classified employees and nonclassified employees as a
percentage of the average funding for each of these classes or
categories of employees among the organization’s peers, in regional
or national markets, as appropriate, and among similar
organizations within the state systems of public higher education;

and

(7) Other data requested by the Legislature or considered
appropriate by the commission or council.

(b) Annual personnel reports. --

(1) No later than December 1, 2013, and annually thereafter,
the commission and council shall report to the Legislative
Oversight Commission on Education Accountability addressing the
following issues:

(A) Progress made by organizations toward achieving full
funding of the temporary classified employees' salary schedule
pursuant to section three, article nine of this chapter; and

(B) Detailed data disaggregated by organization and employee
category or classification, comparing funding for salaries of
faculty, classified employees and nonclassified employees as a
percentage of the average funding for each of these classes or
categories of employees among the organization’s peers, in the
state, region or national markets, as appropriate, and among
similar organizations within the state systems of public higher
education.

(2) The commission and council shall prepare a human resources
report card summarizing the performance of organizations on key
human resources measures. The report card shall be presented to
the Legislative Oversight Commission on Education Accountability no
later than December 1, 2012, and annually thereafter, and shall be
made available to the general public. At a minimum, the human
resources report card shall contain the following data:

(A) Human resources department metrics by organization:

(i) Number of human resources staff;

(ii) Ratio of human resources staff to total number of full-time equivalent employees;

(ii) Total amount of organization employee salaries as a
percent of operating expenses;

(iii) Total amount of organization employee benefit costs as
a percent of cash compensation.

(D) System metrics:

(i) Comparisons of faculty salaries at each organization to
market averages;

(ii) Comparisons of classified and nonclassified employee
salaries at each organization to current market averages;

(E) An account of the total amount, type of training or
professional development provided, the number of employees who
participated and the overall cost of the training and professional
development provided to employees pursuant to section six of this
article; and

(F) Other measures the commission or council considers
appropriate to assist policymakers in evaluating the degree of
success in implementing best human resources practices by higher
education organizations.

(c) Job classification system report. --

By July 1, 2014, and at least once within each five-year
period thereafter, the commission and council jointly shall review
the effectiveness of the system for classifying jobs and submit an
in-depth report to the Legislative Oversight Commission on
Education Accountability. The report shall include, but is not
limited to, findings, recommendations and supporting documentation
regarding the following job classification issues:

(A) The effectiveness of the point factor methodology and a
determination of whether it should be maintained; and

(B) The status of the job evaluation plan, including the
factors used to classify jobs or their relative values, and a
determination of whether the plan should be adjusted.

(d) It is the responsibility of the head of human resources
for each organization to prepare and submit to the president or
chief executive officer all human resources data requested by the
commission and council. The president or executive officer of each
organization shall submit the requested data at times established
by the commission and council.

(e) In meeting reporting requirements established by this
article and articles eight, nine and nine-a of this chapter:

(1) The commission and council shall use the most recent data
available and, as appropriate, shall benchmark it against national
and regional markets or peer data; and

(2) With the exception of the semiannual implementation
reports, the annual human resources report card and any other
report designated as due no later than a date certain, the
commission and council may combine two or more personnel reports if
the dates on which they are due to the Legislature fall within a
sixty-day period.

§18B-7-9. Human resources reviews.

(a) The commission and council jointly shall conduct an
initial human resources review of each organization to be carried
out, subject to legislative appropriation, by an external vendor
possessing experience and expertise in conducting these reviews.
The initial review shall be completed by October 1, 2011, and shall
be designed to compare current human resources practices at each
organization to best practices, to identify areas of strength or
deficiency, to identify functions that should be the responsibility
of the human resources department, but are incorrectly assigned or
carried out by other offices within each organization, to assist in
targeting employee training and development, to determine the
degree to which organizations are adhering to state and federal
laws related to human resources administration and to provide data
necessary to guide policymakers in developing personnel rules and
implementing the classification and compensation system.

(b) Following completion of the initial human resources
review, the commission and council jointly shall conduct a
systematic human resources review of each organization at least
once within each five-year period.

(1) The review shall focus on correcting areas of deficiency
identified by previous reviews, on compliance with statutory
mandates contained in this article and articles eight, nine and
nine-a of this chapter and on adherence to personnel rules of the
commission and council.

(2) In the absence of special circumstances, the commission
and council shall provide organizations with reasonable notice
prior to conducting a human resources review and shall identify the
subjects to be examined in the review.

§18B-7-10. Compensatory time off in lieu of overtime; written
agreement; other conditions.

(a) Notwithstanding any provision of this code to the
contrary, in lieu of overtime compensation, employees of higher
education organizations may receive compensatory time off at a rate
not less than one and one-half hours for each hour of employment.
Employees may receive compensatory time only under the following
conditions:

(1) The time is awarded pursuant to a written agreement
between the employer and the employee arrived at before the work is
performed. A written agreement may be modified at the request of
the employer or employee, but under no circumstances may changes in
the agreement deny an employee compensatory time already acquired;

(2) The time is recorded in the employer's record of hours
worked; and

(3) The employee has not accrued compensatory time in excess
of the prescribed limits.

(b) An employee may accrue up to four hundred eighty hours of
compensatory time if the employee's work is a public safety
activity, an emergency response activity or a seasonal activity.
An employee engaged in other work may accrue up to two hundred
forty hours of compensatory time. An employee who has accrued four
hundred eighty or two hundred forty hours of compensatory time, as
the case may be, shall be paid overtime compensation for additional
hours of work. If compensation is paid to an employee for accrued
compensatory time, the compensation shall be paid at the regular
rate earned by the employee at the time the employee received the
payment.

(c) If employment is terminated, an employee who has accrued
compensatory time pursuant to this section, shall be paid for the
unused compensatory time at a rate of compensation not less than
the higher amount calculated using one of the following formulas:

(1) The average regular rate received by the employee during
the first three years of the employee's employment; or

(2) The final regular rate received by the employee.

(d) An employee who has accrued compensatory time as
authorized by this section, and who has requested the use of
compensatory time, shall be permitted by the employer to use this
time within a reasonable period after making the request if the use
of the compensatory time does not unduly disrupt the operation of
the employing agency. Compensatory time must be used within one
year from the time it is accrued.

(a) Notwithstanding any provision of this code to the
contrary, by July 1, 2015, the percentage of personnel placed in
the category of "nonclassified" at a higher education organization
may not exceed twenty percent of the total number of classified and
nonclassified employees of that organization as those terms are
defined in section two, article nine-a of this chapter and who are
eligible for membership in a state retirement system of the State
of West Virginia or other retirement plan authorized by the state.
A higher education organization which has more than twenty
percent of its employees placed in the nonclassified category as
defined by this subsection on July 1, 2011, shall reduce the number
of nonclassified employees to no more than twenty-five percent by
July 1, 2013, and to no more than twenty percent by July 1, 2015,
except as set forth in subsections (b) and (c) of this section.

(b) For the purpose of determining the ratio of nonclassified
employees pursuant to this section, the following conditions apply:

(1) Employees of the commission and the chancellor for higher
education and employees of the council and the chancellor for
community and technical college education are considered as one
organization;

(2) Organizations may count as faculty or classified
employees, respectively, administrators who retain the right to
return to faculty or classified employee positions; and

(3) Athletic coaches are excluded from calculation of the
ratio. The commission and the council shall include consideration
of this employee category in each review required by section nine
of this article and shall monitor organizations’ use of this
category and include this information in the reports required by
subsections (a) and (b), section eight of this article.

(c) An organization may place up to twenty-five percent of the
total number of classified and nonclassified employees of that
organization as defined by this section in the nonclassified
category under the following conditions:

(1) The governing board of an institution votes to approve any
percentage or fraction of a percentage number above twenty percent
and seeks and receives the approval of the commission or council,
as appropriate, before increasing the total above twenty percent.

(2) In the case of personnel employed by the commission and
the council, the chancellors jointly shall agree to increase the
percentage number or fraction of a number of nonclassified
employees beyond twenty percent and shall recommend this action to
their respective boards for approval.

(A) The commission and council each shall approve or
disapprove the increase and shall include the vote, as well as
details of the position and justification for placing the position
in the nonclassified category, in its minute record.

(B) The number of nonclassified personnel may not be increased
above twenty percent unless the increase is approved by both the
commission and the council.

(3) Powers and duties of Commission and Council regarding
nonclassified staff ratios. --

(A) It is the duty of the commission and council jointly to
establish criteria for the purpose of making decisions on approving
or disapproving requests by organizations to exceed the twenty
percent limit for personnel placed in the nonclassified category;

(B) The commission and council shall provide technical
assistance to organizations under their respective jurisdictions in
collecting and interpreting data to ensure that they fulfill the
requirements established by this section. Consideration of these
issues shall be made part of each review required by section nine
of this article and information from the review included in the
reports required by subsections (a) and (b), section eight of this
article;

(C) The chancellors shall monitor the progress of the
organizations in meeting the deadlines established in this section
and shall report periodically to the council and commission. The
commission and council shall make a preliminary compliance report
to the Legislative Oversight Commission on Education Accountability
by September 1, 2013, and a final report on organization compliance
to that body by September 1, 2015.

(D) Subject to a joint recommendation by the commission and
the council and subsequent affirmative action by the Legislature to
extend the authority beyond the specified date of termination, the
authority of an organization to place more than twenty percent of
its personnel in the nonclassified category pursuant to this
section expires on July 1, 2016.

(d) The current annual salary of a nonclassified employee may
not be reduced if his or her position is redefined as a classified
position solely to meet the requirements of this section. If such
a nonclassified employee is reclassified, his or her salary does
not constitute evidence of inequitable compensation in comparison
to other employees in the same paygrade.

§18B-7-12. Additional employment by mutual agreement; agreement
to be filed with governing board.

In accordance with duly promulgated rules of the governing
board and the commission or council, as appropriate, the president
of an organization, or his or her designated representative, and a
classified employee at the organization may agree mutually on
duties to be performed by the employee in addition to those duties
listed in the job description. The written agreement shall
describe the additional duties to be performed, the length of time
the agreement shall be in force and the additional compensation to
be paid. These terms and conditions shall be agreed upon by the
president and the classified employee and shall be signed by both
parties to the agreement and filed with the appropriate governing
board.

§18B-7-13. Probationary employment period; evaluation.

Each full-time classified employee hired by an organization
shall serve an initial probationary period of six months. At the
end of the probationary period, the employee shall receive a
written evaluation of his or her performance. The employee's
supervisor shall meet with the employee and explain the contents of
the evaluation and whether the employee is being offered regular
employment.

(a) For the purposes of this section, "employee" means either
of the following:

(1) A classified or nonclassified employee who is employed by
a higher education governing board, by the commission or by the
council; or

(2) A faculty member, as defined in section one, article eight
of this chapter, who is eligible to accrue sick leave.

(b) An employee may donate sick and annual leave to a leave
bank established and operated in accordance with subsection (d) of
this section or directly to another employee in accordance with
subsection (e) of this section. No employee may be compelled to
donate sick or annual leave. Any leave donated by an employee
pursuant to this section shall be used only for the purpose of
catastrophic illness or injury as defined in subsection (c) of this
section and shall reduce, to the extent of such donation, the
number of days of annual or sick leave to which the employee is
entitled.

(c) For the purpose of this section, a catastrophic illness or
injury is one that is expected to incapacitate the employee and
create a financial hardship because the employee has exhausted all
sick and annual leave and other paid time off. Catastrophic
illness or injury also includes an incapacitated immediate family
member as defined by a governing board, the commission or the
council, as appropriate, if this results in the employee being
required to take time off from work for an extended period of time
to care for the family member and if the employee has exhausted all
sick and annual leave and other paid time off.

(d) A leave bank or banks may be established at each state
institution of higher education, the commission or the council to
which employees may donate either sick or annual leave. The bank
or banks may be established jointly by the policy commission and
the governing boards or may be established for the commission, the
council, and each of the governing boards. Sick or annual leave
may be deposited in the leave bank, and shall be reflected as a
day-for-day deduction from the sick or annual leave balance of the
depositing employee.

Donated leave may be withdrawn by any employee experiencing a
catastrophic illness or injury when the following conditions are
met:

(1) The president of the institution or the chancellor of the
commission or the council, as appropriate, verifies that the
employee is unable to work due to the catastrophic illness or
injury; and

(2) The president of the institution or a chancellor, as
appropriate, approves the withdrawal and provides written notice to
the personnel office.

The withdrawal shall be reflected as a day-for-day addition to
the leave balance of the withdrawing employee.

(e) Sick or annual leave may be donated to an employee
experiencing a catastrophic illness or injury. The leave shall be
donated at the request of the employee after appropriate
verification that the employee is unable to work due to the
catastrophic illness or injury as determined by the president of
the institution or the appropriate chancellor. When transfer of
sick or annual leave is approved by the president of the
institution or the appropriate chancellor, any employee may donate
sick or annual leave in one-day increments by providing written
notice to the personnel office. Donations shall be reflected as a
day-for-day deduction from the sick or annual leave balance of the
donating employee. An employee receiving the donated sick or
annual leave shall have any time which is donated credited to his
or her account in one-day increments and reflected as a day-for-day
addition to the leave balance of the receiving employee.

(f) Use of donated credits may not exceed a maximum of twelve
continuous calendar months for any one catastrophic illness or
injury.

(1) The total amount of sick or annual leave withdrawn or
received may not exceed an amount sufficient to ensure the
continuance of regular compensation and may not be used to extend
insurance coverage pursuant to section thirteen, article sixteen,
chapter five of this code.

(2) An employee withdrawing or receiving donations of sick or
annual leave pursuant to this section shall use any leave
personally accrued on a monthly basis prior to receiving additional
donated sick or annual leave.

(g) Donated sick or annual leave deposited in an institutional
leave bank or transferred under subsection (d) of this section may
be inter-institutional in accordance with the policies of the
appropriate governing board. Each institution, the commission or
the council is responsible for the administration of the sick or
annual leave deposits, withdrawals and transfers of its employees.
Rules implementing the provisions of this section may be adopted
jointly or separately by the governing boards, the commission or
the council in accordance with section six, article one of this
chapter and, in the case of the commission and council, in
accordance with article three-a, chapter twenty-nine-a of this
code.

§18B-7-15. Merit increases.

Higher education organizations may grant merit increases which
are in accordance with this article and articles eight, nine and
nine-a of this chapter and with duly promulgated rules of the
commission and council.

§18B-7-16. Study of employment practices.

(a) The commission and council shall study the following
issues relating to employment practices:

(1) Developing a fair and rational policy based upon best
human resources practices for covering reductions in force,
furloughs and other issues relating to seniority including
determining how employees shall be treated whose salaries are
derived from funds other than state appropriations;

(2) Determining the advantages and disadvantages of
maintaining the internal preferences for hiring, promoting and
transferring classified employees;

(3) Collecting and analyzing data and developing
recommendations on the advantages and disadvantages of outsourcing
certain functions at the organization level. The data shall
include, but are not limited to, the following items:

(A) A current database of outsourcing practices followed by
each organization including procedures or rules developed to inform
policy decisions;

(B) The total number, disaggregated by organization, of
positions or services being outsourced or filled by temporary
employees;

(C) The amount of actual cost savings, if any, that are
realized or may be realized as a direct result of organizations’
outsourcing decisions;

(4) Recommending a rational, uniform policy to determine the
status of employees whose positions are funded, in whole or in
part, by an external grant or contract from a federal, state or
local government or a private entity.

(b) The commission and council shall complete the work and
report their findings, conclusions and recommendations, together
with drafts of any legislation necessary to effectuate the
recommendations, to the Legislative Oversight Commission on
Education Accountability no later than January 1, 2012.

ARTICLE 8. HIGHER EDUCATION FACULTY.

§18B-8-1. Definitions.

As used in this article:

(a) "Academic rank", “rank” or “faculty rank” means the
position held by a faculty member as determined by the president,
consistent with a rule promulgated and adopted by the governing
board, and includes the positions of professor, associate
professor, assistant professor and instructor. All other ranks are
excluded from the provisions of this article.

(b) "Salary" means the total nine-month or ten-month salary
paid from state funds to a full-time faculty member, or if the
employment period is other than nine or ten months, the total
salary adjusted to a nine-month base salary;

(c) "Full-time faculty" means a faculty member so designated
by the president, consistent with the duly promulgated and adopted
rule of the appropriate governing board, and those persons with
faculty rank who have research or administrative responsibilities.

(a) Each governing board shall promulgate and adopt a faculty
salary rule in accordance with section six, article one of this
chapter which furthers the goals of attracting, retaining and
rewarding high quality faculty. Faculty salary increases shall be
distributed within each organization in accordance with the faculty
salary rule.

(b) The salary of a full-time faculty member may not be
reduced by the provisions of this article.

(c) The faculty salary rule shall pursue the following goals:

(1) The salary of each full-time faculty member within a
discipline group is competitive with those in similar disciplines
at peer institutions;

(2) Faculty are recognized for outstanding performance;

(3) Equity among salaries is maintained; and

(4) The faculty at each institution are involved effectively
in the administration of the faculty salary rule.

(d) Each faculty member shall receive a salary increase of at
least ten percent when he or she is promoted in rank.

§18B-8-3. Authority to grant sabbatical leave.

A governing board may grant sabbatical leave to a faculty
member at the state institution of higher education under its
jurisdiction for the purpose of permitting him or her to engage in
graduate study, research or other activities calculated to improve
teaching ability. A governing board may grant a request for
sabbatical leave only in accordance with the uniform rule it has
promulgated and adopted. A governing board may not adopt a rule
which provides for granting sabbatical leave to a faculty member
who has served fewer than six years at the institution where
presently employed, nor which provides for leave for more than one
half the contract period at full pay or for a full contract period
at half pay. A faculty member receiving a sabbatical leave is
required to return and serve the institution granting the leave for
at least one year or to repay to the institution the compensation
received during leave. A faculty member returning from leave shall
be reinstated at the academic rank held immediately prior to taking
sabbatical leave unless he or she is promoted to a higher rank and
is entitled to the salary and any salary increases appropriate to
his or her rank and years of experience. The compensation for a
faculty member on sabbatical leave is paid by the institution where
employed from its regular personal services appropriations.

§18B-8-4. Effect of leave of absence on academic tenure, rank,
etc.

(a) Notwithstanding any provision of law to the contrary, a
tenured professional at a state institution of higher education who
is absent from duties at the institution to accept employment in a
nonelected governmental capacity is afforded the benefits of
academic tenure, rank and position as if he or she had remained
continuously in the position retained and held at the institution
immediately preceding the absence if the following conditions are
met:

(1) The absence is approved by the president of the state
institution of higher education by which the professional is
employed;

(2) The leave of absence does not exceed two years; or

(3) If the leave of absence extends for more than two years,
the president requests approval from the governing board for the
absence in writing each year and the board approves each request up
to eight full years.

(b) An individual who remains in governmental employment with
leave granted in accordance with this section forfeits all rights
to academic tenure, rank and position formerly held at the
employing institution at the end of the eighth year of government
employment.

§18B-8-5. Notice to probationary faculty members of retention or
nonretention; hearing.

(a) For the purposes of this section, "Probationary faculty
member" means the definition adopted in a joint rule promulgated by
the commission and council. The rights provided to probationary
faculty members by this section are in addition to, and not in lieu
of, other rights afforded to them by other rules and other
provisions of law.

(b) The president of each state institution of higher
education shall give written notice concerning retention or
nonretention for the ensuing academic year to a probationary
faculty member not later than March 1.

(c) If a probationary faculty member who is not retained so
requests, the president or his or her designee shall inform the
probationary faculty member by certified mail within ten days of
the reasons for nonretention. A probationary faculty member who
desires to appeal the decision may proceed to level three of the
grievance procedure established in article two, chapter six-c of
this code. If the administrative law judge decides that the
reasons for nonretention are arbitrary, capricious or without a
factual basis, the faculty member shall be retained for the ensuing
academic year.

Each governing board, with the advice and assistance of the
faculty senate, shall promulgate and adopt a rule in accordance
with section six, article one of this chapter addressing the
following issues:

(a) Defining an appropriate balance between full-time and
adjunct faculty members and the appropriate role of adjunct
faculty; and

(b) Requiring each administrator on each campus who holds
faculty rank to teach at least one course during each eighteen-month employment period or to perform on-going research in lieu of
teaching.

(a) The purpose of the Legislature in enacting this article is
to require the commission and council jointly to implement,
control, supervise and manage a complete, uniform system of
personnel classification and compensation in accordance with the
provisions of this article for classified employees at higher
education organizations.

(b) It is the intent of the Legislature to require each higher
education organization to achieve full funding of the salary
schedule established in section three of this article. A higher
education organization, as defined in section two, article nine-a
of this chapter, is subject to the provisions of this article until
full funding is reached.

(c) It is further the intent of the Legislature to encourage
strongly that each organization dedicate a portion of future
tuition increases to fund the classified salary schedule and, after
full funding of the salary schedule is achieved, to move toward
meeting salary goals for faculty, classified and nonclassified
employees.

§18B-9-2. Definitions.

The following words have the meanings ascribed to them unless
the context clearly indicates a different meaning:

(a) "Classified employee” or “employee" means a regular full-time or regular part-time employee of an organization who holds a
position that is assigned a particular job title and pay grade in
accordance with the personnel classification and compensation
system established by this article or by the commission and
council;

(b) "Job description" means the specific listing of duties and
responsibilities as determined by the appropriate governing board,
the commission or council and associated with a particular job
title;

(c) "Job title" means the name of the position or job as
defined by the commission and council;

(d) "Pay grade" means the number assigned by the commission
and council to a particular job title and refers to the vertical
column heading of the salary schedule established in section three
of this article;

(e) "Personnel classification system" means the process of job
categorization adopted by the commission and council jointly by
which job title, job description, pay grade and placement on the
salary schedule are determined;

(f) "Salary" means the amount of compensation paid through the
State Treasury per annum, excluding those payments made pursuant to
section two, article five, chapter five of this code, to an
organization employee;

(g) "Schedule" or "salary schedule" means the grid of annual
salary figures established in section three of this article; and

(h) "Years of experience" means the number of years a person
has been an employee of the State of West Virginia and refers to
the horizontal column heading of the salary schedule established in
section three of this article. For the purpose of placement on the
salary schedule, employment for nine months or more equals one year
of experience, but a classified employee may not accrue more than
one year of experience during any given fiscal year. Employment
for less than full time or for fewer than nine months during any
fiscal year shall be prorated. In accordance with rules
established by the commission and council jointly, a classified
employee may be granted additional years of experience not to
exceed the actual number of years of prior, relevant work or
experience at accredited institutions of higher education other
than state institutions of higher education.

(a) There is hereby continued a temporary state annual salary
schedule for classified employees consisting of a minimum annual
salary for each pay grade in accordance with years of experience.
Nothing in this article guarantees payment to a classified employee
of the salary indicated on the schedule at the actual years of
experience. The minimum salary herein indicated shall be prorated
for classified employees working fewer than thirty-seven and one-half hours per week. For the purposes of this article and article
nine-a, despite any differences in salaries that may occur, a
classified employee is equitably compensated in relation to other
classified employees in the same pay grade if the following
conditions exist:

(1) His or her annual salary is at least the minimum salary
that was required for his or her pay grade and years of experience
on July 1, 2001, on the salary schedule included in this section;
and

(2) Progress is being made by the institution in meeting the
salary goals set out in this article and article nine-a.

(b) Nothing in this section requires an appropriation by the
Legislature in excess of the legislative funding priorities as set
forth in this chapter.

(c) For purposes of this article, an organization has achieved
full funding of the temporary salary schedule established by this
section when it provides, in total, one hundred percent of the
funds needed to meet the salary funding target as calculated in
October, 2010, in a report, required by a prior enactment of this
section, and presented to the Legislative Oversight Commission on
Education Accountability. Until an organization has achieved full
funding as described and has received certification to this effect
from the commission or council, as appropriate, the following
requirements apply:

(1) Classified salary increases distributed within the
organization shall be provided in accordance with the uniform
classification and compensation system established by this article
and rules of the commission and council and shall be applied toward
achieving full funding of the temporary salary schedule; and

(2) An organization may not provide discretionary salary
increases, including merit or performance-based increases, to the
president or chief executive officer of an organization or to any
group or class of employees within the organization, other than
classified employees, unless the organization has achieved full
funding of the salary schedule established in this section or is
making appropriate progress toward achieving full funding of the
salary schedule.

(A) This prohibition does not apply to salary increases
mandated by law or funded by the Legislature.

(B) For the purposes of subdivision (2) of this subsection,
“appropriate progress” has the following meanings:

(i) For governing boards under the jurisdiction of the
commission, appropriate progress means an organization has funded
at least twenty-five percent of the amount needed to reach full
funding of the salary schedule by July 1, 2012 as calculated
pursuant to this subsection; has funded at least fifty percent of
the calculated amount by July 1, 2013; has funded at least seventy-five percent of the calculated amount by July 1, 2014 and has
funded one hundred percent of the calculated amount by July 1,
2015; and

(ii) For governing boards under the jurisdiction of the
council, appropriate progress means an organization has funded at
least twenty-five percent of the amount needed to reach full
funding of the salary schedule by July 1, 2013 as calculated
pursuant to this subsection; has funded at least fifty percent of
the calculated amount by July 1, 2014; has funded at least seventy-five percent of the calculated amount by July 1, 2015 and has
funded one hundred percent of the calculated amount by July 1,
2016.

(a) The current annual salary of a classified employee may not
be reduced by the provisions of this article nor by any other
action inconsistent with the provisions of this article.

(b) Nothing in this article prohibits promotion of a
classified employee to a job title carrying a higher pay grade if
the promotion is in accordance with the provisions of this article,
the personnel classification and compensation system and personnel
rules of the commission and council.

(c) An organization may pay classified employees in excess of
the salary established for their pay grade and years of experience
indicated on the salary schedule established by section three of
this article under the following conditions:

(1) The commission or council, as appropriate, certifies that
the organization has achieved full funding; and

(2) The governing board has promulgated and adopted a salary
rule in accordance with section six, article one of this chapter
and the rules of the commission and council establishing a
procedure to ensure that salary increases above the temporary
salary schedule are distributed equitably and in a manner that is
consistent with the uniform classification and compensation system.

ARTICLE 9A. CLASSIFICATION AND COMPENSATION SYSTEM.

§18B-9A-1. Legislative intent and purpose.

(a) The intent of the Legislature in enacting this article is
to establish the classification and compensation system for certain
employees of higher education organizations and apply recognized
best human resources practices in order to use available resources
in the most effective and efficient manner for the benefit of the
citizens of West Virginia.

It is further the intent of the Legislature to establish a
plan that is fair, accountable, credible, transparent and
systematic. In recognition of the importance of these qualities,
this article, together with articles seven, eight and nine of this
chapter, is designated and may be cited as “FACTs for Higher
Education”.

(b) In furtherance of the principles described in subsection
(a) of this section, the chief purposes of the classification and
compensation system are to accomplish the following objectives:

(1) Develop and implement a classification and compensation
system that is fair, transparent, understandable, simple to
administer, self-regulating and adaptable to meet future goals and
priorities;

(2) Provide current, reliable data to governing boards, the
commission, the council, the Governor and the Legislature to inform
the decision-making process of these policymakers;

(3) Attract well-qualified and diverse job applicants and
retain and motivate employees to accomplish the goals, objectives
and priorities identified in state law, rules of the commission and
council, the statewide master plans for higher education and the
institutions’ compacts;

(4) Retain and reward employees who make valuable
contributions to state and organization goals, objectives and
priorities;

(5) Compensate employees within an organization fairly in
relation to one another;

(6) Compensate employees across organizations who are
performing similar work at similar wage rates;

(7) Compensate employees at levels that are competitive with
appropriate external markets and are fiscally responsible;

(8) Improve the process for evaluating jobs, including, but
not limited to, mandating training and development in best human
resources practices and directing that key terms, job titles and
evaluation forms are consistent across organizations; and

(9) Ensure that regular market salary analyses are performed
to determine how organization compensation for all classes of
employees compares to compensation in relevant external markets.

§18B-9A-2. Definitions.

As used in this article and articles seven, eight and nine of
this chapter, the following words have the meanings ascribed to
them unless the context clearly indicates a different meaning:

(a) “Classification system” means the process by which jobs,
job titles, career ladders and assignment to pay grades are
determined.

(b) “Classified employee” or “employee” means any regular
employee of an organization who holds a position that is assigned
a particular job and job title within the classification system
established by this article, article nine and by duly promulgated
and adopted rules of the commission and council.

(c) “Job” means the total collection of tasks, duties and
responsibilities assigned to one or more individuals whose work is
of the same nature and level.

(d) “Job description” means a summary of the most important
features of a job, including the general nature and level of the
work performed.

(f) “Job family” means a group of jobs having the same nature
of work, but requiring different levels of skill, effort,
responsibility or working conditions.

(g) “Job title” means the descriptive name for the total
collection of tasks, duties and responsibilities assigned to one or
more individuals whose positions have the same nature of work
performed at the same level.

(h) “Job worth hierarchy” means the perceived internal value
of jobs in relation to each other within an organization.

(i) “Nonclassified employee” means an employee of an
organization who holds a position that is not assigned a particular
job and job title within the classification system established by
this article, article nine, and by duly promulgated and adopted
rules of the commission and council and who meets one or more of
the following criteria:

(1) Holds a direct policy-making position at the department or
organization level; or

(2) Reports directly to the president or chief executive
officer of the organization.

(j) “Organization” means the commission, the council, an
agency or entity under the respective jurisdiction of the
commission or the council or a state institution of higher
education as defined in section two, article one of this chapter.

(k) “Pay grade” means the level to which a job is assigned
within a job worth hierarchy.

(l) “Point factor methodology” means a quantitative job
evaluation process in which elements of a job are given a factor
value and each factor is weighted according to its importance.

(m) “Position description” means a summary of the total duties
and responsibilities of a position based on factors provided in the
position information questionnaire (PIQ).

(n) “Position information questionnaire” or “PIQ” means a tool
used in the creation and evaluation of position descriptions and
includes the factors of knowledge, experience, complexity and
problem solving, freedom of action, scope and effect, breadth of
responsibility, intra-systems contacts, external contacts, direct
supervision of personnel, indirect supervision of personnel and
health, safety and physical considerations.

(o) “Step” means a standard progression in pay rate that is
established within a pay grade.

§18B-9A-3. Applicability.

(a) The provisions of this article apply to employees whose
employment, if continued, accumulates to a minimum total of one
thousand forty hours during a calendar year and extends over at
least nine months of a calendar year.

(b) Until the commission or council, as appropriate, has
certified that an organization has achieved full funding of the
temporary classified employee annual salary schedule or is making
appropriate progress toward attaining full funding as defined by
section three, article nine of this chapter, the organization is
subject to article nine of this chapter and may not exercise
flexibility provisions in any area of human resources identified in
this chapter or in commission and council rule.

(a) The commission and council jointly shall maintain a
uniform system for classifying jobs and positions of organization
employees.

(b) Pursuant to the rule authorized in section seven of this
article, the commission and council jointly shall establish and
maintain a job classification committee.

The rule shall contain the following provisions related to the
job classification committee:

(A) A systematic method for appointing committee members who
are representative of all the higher education organizations and
affected constituent groups including specifically providing for
membership selections to be made from nominations from these higher
education organizations and affected constituent groups;

(B) A requirement that members be approved by the commission
and council before beginning service on the committee;

(C) A requirement that an organization may have no more than
two members serving on the committee at any time and the combined
membership representing various groups or divisions within or
affiliated with an organization in total may not constitute a
majority of the membership; and

(D) A requirement that committee members serve staggered
terms. One third of the initial appointments shall be for two
years, one third for three years and one third for four years.
Thereafter, the term is four years. A member may not serve more
than four years consecutively.

(c) Powers and duties of the committee include, but are not
limited to, the following:

(1) Modifying and deleting jobs and assigning job titles;

(2) Reviewing and revising job titles to make them consistent
among organizations, including adopting consistent title
abbreviations;

(5) Determining when new job titles are needed and creating
new job titles within the system;

(6) Recommending base pay enhancements for jobs for which the
application of point factor methodology produces significantly
lower salaries than external market pricing. The committee may
exercise this authority only if it reevaluates each job annually to
make a determination whether the enhancement should be continued;

(7) Recommending a procedure for performing job family
reviews;

(8) Determining appropriate career ladders within the
classification system and establishing criteria for career
progression; and

(9) Hearing job classification appeals prior to commencement
of the formal grievance process pursuant to commission and council
rule.

(d) The committee shall meet monthly if there is business to
conduct and also may meet more frequently at the call of the chair.
A majority of the voting members serving on the committee at a
given time constitutes a quorum for the purpose of conducting
business.

(e) When evaluating jobs, the committee shall use the
following procedure:

(1) Each committee member shall classify each job
individually, independently of other members;

(2) The chair shall compile and share the individual
evaluations with the whole committee; and

(3) After discussing the issues and resolving differences, the
committee shall make a determination of the appropriate
classification for each job.

(f) The commission and council shall use a point factor
methodology to classify jobs. The commission and council jointly
may adjust the job evaluation plan, including the factors used to
classify jobs and their relative values, at any time.

(g) No later than July 1, 2012, the commission and council
shall have in place an up-to-date job description for every
classified job.

(h) The commission and council shall develop a position
information questionnaire to be used by all organizations to gather
data necessary for classification of positions within the job worth
hierarchy.

(a) Pursuant to the rule authorized in section seven of this
article, the commission and council jointly shall establish and
maintain a compensation planning and review committee.

(b) Within the guidelines established in this article and
articles seven, eight and nine of this chapter, the committee shall
manage all aspects of compensation planning and review that the
commission and council jointly delegate to it.

The rule shall contain the following requirements related to
the compensation planning and review committee:

(1) A systematic method for appointing committee members who
are representative of all the higher education organizations and
affected constituent groups including specifically providing for
membership selections to be made from nominations from these higher
education organizations and affected constituent groups; and

(2) A requirement that members be approved by the commission
and council before beginning service on the committee;

(3) A requirement that an organization may have no more than
two members serving on the committee at any time and the combined
membership representing various groups or divisions within or
affiliated with an organization in total may not constitute a
majority of the membership; and

(4) A requirement that committee members serve staggered
terms. One third of the initial appointments shall be for two
years, one third for three years and one third for four years.
Thereafter, the term is four years. A member may not serve more
than four years consecutively.

(c) The committee shall meet at least quarterly and at other
times at the call of the chair. A majority of the voting members
serving on the committee at a given time constitutes a quorum for
the purpose of conducting business.

(d) An institution may not have a majority of the committee
members and the combined membership representing various groups or
divisions within or affiliated with an organization in total may
not constitute a majority of the membership.

(e) The Compensation Planning and Review Committee has powers
and duties which include, but are not limited to, the following:

(1) Making annual recommendations for revisions in the system
compensation plan, based on existing economic, budgetary and fiscal
conditions or on market study data.

(2) Overseeing the five-year external market salary study;

(3) Overseeing the annual internal market review;

(4) Meeting at least annually with the Job Classification
Committee to discuss benchmark jobs to be included in salary
surveys, market “hot jobs” that may require a temporary salary
adjustment, results of job family reviews, and assessment of
current job titles within the classification system for market
matches and other issues as the Vice Chancellor for Human
Resources, in consultation with the chancellors, determines to be
appropriate; and

(5) Performing other duties as assigned by the commission and
council or as necessary or expedient to maintain an effective
classification and compensation system.

(f) The commission and council may allow the committee to
collapse the three lowest pay grades into a single pay grade and
provide for employees to be paid at rates appropriate to the
highest of the three lowest pay grades.

§18B-9A-6. Salary structure and salary schedules.

(a) The commission and council shall develop and maintain a
market salary structure and minimum salary schedules and ensure
that all organizations under their respective jurisdictions adhere
to state and federal laws and duly promulgated and adopted
organization rules.

(b) The commission and council may not delegate any of the
following duties to the Compensation Planning and Review Committee
or the Job Classification Committee:

(1) Approval of a classification and compensation rule;

(2) Approval of the job evaluation plan;

(3) Approval of the annual market salary schedule; and

(4) Approval of the annual minimum salary schedule.

(c) The market salary structure serves as the basis for the
following activities:

(1) Evaluating compensation of classified employees in
relation to appropriate external markets; and

(2) Developing the minimum salary schedules to be adopted by
the commission and council.

(d) The market salary structure shall meet the following
criteria:

(1) Sets forth the number of pay grades and steps to be
included in the structure;

(2) Includes a midpoint value for each pay grade which
represents the average salary of jobs in that pay grade. The
commission and council may choose a midpoint value that is not
based exclusively on market salary data; and

(3) Includes minimum and maximum step values based on an
established range spread, as well as values for other steps in the
salary structure.

(e) The commission and council jointly shall contract with an
external vendor to conduct a classified employee market salary
study at least once within each five-year period. At the
conclusion of the study, the commission and council, in
consultation with the Compensation Planning and Review Committee,
may take any combination of the following actions:

(1) Adjust the number of pay grades and the point values
necessary for a job to be assigned to a particular pay grade;

(f) The commission and council jointly may perform an annual
review of market salary data to determine how salaries have changed
in the external market. Based on data collected, the commission
and council jointly in consultation with the Compensation Planning
and Review Committee, shall adjust the market salary structure, if
changes are supported by the data. In the absence of a market
salary study conducted by an external vendor, the commission and
council may not adjust the midpoint differentials between pay
grades unless required to do so by a change in minimum wage or
other laws and may not adjust the range spread for any pay grade.

(g) Annually, the commission and council may approve a minimum
salary schedule that sets forth a compensation level for each step
and pay grade below which no organization employee may be paid.

(1) The minimum salary floor for each pay grade and step on
the minimum salary schedule is determined by applying the
percentage fixed by commission and council rule promulgated
pursuant to section seven of this article to the annual market
salary data. The commission and council also shall consider the
minimum wage and other laws that ensure that employees earn a
living wage and shall maintain a salary structure which ensures
that the average salary of each class of employees meets relative
market equity among employee classes. The commission and council
may take into consideration other factors they consider
appropriate.

(2) The salary of an employee working fewer than thirty-seven
and one-half hours per week shall be prorated.

(h) The organization rule promulgated pursuant to (d), section
seven of this article may provide for differential pay for certain
employees who work different shifts, weekends or holidays.

(a) Notwithstanding any provision of law or rule to the
contrary, the commission and council jointly shall design, develop,
implement and administer the personnel system of classification and
compensation pursuant to this article and articles seven, eight and
nine of this chapter. In developing and designing the system, they
shall give careful consideration to the recommendations and
supporting documentation contained in the Final Report to the
Select Committee on Higher Education Personnel, prepared pursuant
to section thirteen, article one-b of this chapter, which was
received and approved by the Select Committee on January 11, 2010.

(b) Classification and compensation system rule. --

By November 1, 2011, the commission and council shall propose
a joint rule or rules for legislative approval in accordance with
article three-a, chapter twenty-nine-a of this code to implement
the provisions of this article and articles seven, eight and nine
of this chapter. The rule shall establish a classification and
compensation system that incorporates best human resources
practices and takes into consideration the recommendations of the
Legislative Select Committee on Higher Education Personnel. At a
minimum, the system rule shall address the areas of organization
accountability, employee classification and compensation,
performance evaluation and development of organization rules.

(1) Organization accountability. --

The system rule shall provide a procedure for correcting
deficiencies identified in the human resources reviews conducted
pursuant to section nine, article seven of this chapter. The
procedure shall include, but is not limited to, the following
components:

(A) Specifying a reasonable time for organizations to correct
deficiencies uncovered by a review;

(B) Applying sanctions when major deficiencies are not
corrected within the allotted time:

(i) For purposes of this subsection, a major deficiency means
an organization has failed to comply with federal or state law or
with personnel rules of the commission and council.

(ii) When a major deficiency is identified, the commission or
council, as appropriate, shall notify the governing board of the
institution in writing, giving particulars of the deficiency and
outlining steps the governing board is required to take to correct
the deficiency.

(iii) The governing board shall correct the major deficiency
within four months and shall notify the commission or council, as
appropriate, when the deficiency has been corrected.

(iv) If the governing boards fail to correct the major
deficiency or fails to notify the commission or council, as
appropriate, that the deficiency has been corrected within a period
of four months from the time the governing board receives
notification, the commission or council shall apply sanctions as
specified:

(I) A formal reprimand shall be placed in the personnel file
of each key administrator who shares responsibility and has
operational authority in the area of the identified deficiency; and

(II) Other sanctions may include, but are not limited to,
suspending new hiring by the organization and prohibiting
compensation increases for key administrators who have authority
over the areas of major deficiency until the identified
deficiencies are corrected.

(C) Certifying that an organization has achieved full funding
of the temporary annual classified employee salary schedule or is
making appropriate progress toward achieving full funding pursuant
to section three, article nine of this chapter.

(2) Employee classification and compensation. -- The system
rule shall establish a classification and compensation system to
accomplish the following objectives:

(A) Moving classified employees through the classification
system based on performance and other objective, measurable factors
including education, years of experience in higher education and
experience above position requirements;

(C) Assigning each current employee to an initial step for his
or her pay grade that is closest to and exceeds his or her current
salary regardless of previous education, experience or performance.
The rule shall provide that the salary of a current employee may
not be reduced by a job reclassification, a modification of the
market salary schedule, or other conditions that the commission and
the council consider appropriate and reasonable;

(D) Establishing a job worth hierarchy and identifying the
factors to be used to classify jobs and their relative values and
determining the number of points that are necessary to assign a job
to a particular pay grade;

(E) Establishing an objective standard to be used in
determining when a job description or a position description is up-to-date;

(F) Providing a procedure whereby a classified employee or a
supervisor who believes that changes in the job duties and
responsibilities of the employee justify a position review may
request that a review be done at any time;

(G) Specifying that the acceptable period that may elapse
between the time when an employee files a formal request for a
position review and the time when the review is completed may not
exceed forty-five days. An organization that fails to complete a
review within the specified time shall provide the employee back
pay from the date the request for review was received if the
review, when completed, produces a reclassification of the position
into a job in a higher pay grade;

(H) Providing a procedure by which employees may file appeals
of job classification decisions for review by the Job
Classification Committee prior to filing a formal grievance. The
committee shall render a decision within sixty days of the date the
appeal is filed with the commission or the council;

(I) Providing for recommendations from the Compensation
Planning and Review Committee and the Job Classification Committee
to be considered by the commission and the council and to be
included in the legislative reporting process pursuant to section
eight, article seven of this chapter; and

(J) Establishing and maintaining the job classification
committee mandated in section four of this article.

(3) Performance evaluations. -- The system rule shall provide
for developing and implementing a consistent, objective performance
evaluation model and shall mandate that training in conducting
performance evaluations be provided for all organization personnel
who hold supervisory positions.

(c) Emergency rule. --

(1) The Legislature hereby finds that an emergency exists and,
therefore, the commission and council shall propose a joint
emergency rule or rules by November 1, 2011, in accordance with
article three-a, chapter twenty-nine-a of this code to implement
the provisions of this article and articles seven, eight and nine
of this chapter.

(2) The commission and council shall file the emergency rule
or rules with the Legislative Oversight Commission on Education
Accountability by the date specified in subdivision (1) of this
subsection and may not implement the emergency rule or rules
without prior approval.

(d) Organization rules. -–

(1) Each organization shall promulgate and adopt a rule or
rules in accordance with the provisions of section six, article one
of this chapter to implement requirements contained in the
classification and compensation system rule or rules of the
commission and council. The commission and council shall provide
a model personnel rule for the organizations under their
jurisdiction and shall provide technical assistance in rulemaking
as requested.

(2) The initial organization rule shall be adopted not later
than six months following the date on which the commission and
council receive approval to implement the emergency rule
promulgated pursuant to this section. Additionally, each
organization shall amend its rule to comply with mandated changes
not later than six months after the effective date of any change in
statute or rules, unless a different compliance date is specified
within the statute or rule containing the requirements or mandate.

(3) An organization may not adopt a rule under this section
until it has consulted with the appropriate employee class affected
by the rule’s provisions.

(4) If an organization fails to adopt a rule or rules as
mandated by this subsection, the commission and council may
prohibit it from exercising any flexibility or implementing any
discretionary provision relating to human resources contained in
statute or in a commission or council rule until the organization’s
rule requirements have been met.

(5) Additional flexibility or areas of operational discretion
identified in the system rule or rules may be exercised only by an
organization which meets the following requirements:

(A) Receives certification from the commission or council, as
appropriate, that the organization has achieved full funding of the
temporary salary schedule or is making appropriate progress toward
achieving full funding pursuant to section three, article nine of
this chapter;

(B) Promulgates a comprehensive classification and
compensation rule as required by this section;

(C) Receives approval for the classification and compensation
rule from the appropriate chancellor in accordance with this
section; and

(D) Adopts the rule by vote of the organization’s governing
board.

(6) Notwithstanding any provision of this code to the
contrary, each chancellor, or his or her designee, has the
authority and the duty to review each classification and
compensation rule promulgated by an organization under his or her
jurisdiction and to recommend changes to the rule to bring it into
compliance with state and federal law, commission and council rules
or legislative, commission and council intent. Each chancellor may
reject or disapprove any rule, in whole or in part, if he or she
determines that it is not in compliance with law or rule or if it
is inconsistent with legislative, commission and council intent.

§18B-9A-8. Implementation of classification and compensation system.

(a) Sweeping cultural changes are needed to implement the
recommendations of the Select Committee on Higher Education
Personnel and the provisions of this article and articles seven,
eight and nine of this code. These kinds of changes require
dedication and cooperation from all employee classes across the two
systems of public higher education, the commission, council and
state policymakers. The primary responsibility for implementation,
however, rests with the commission and the council who shall
provide leadership and assistance to the human resources
professionals within each organization to bring about the changes
successfully.

(b) The implementation process shall be carried out in
incremental steps, some of which may occur simultaneously. The
steps include the following:

(1) Communicating with organization employees and
administrators to acquaint them with the guiding principles of the
classification and compensation system. The principles which
undergird the policy changes are designed to promote fairness,
accountability, credibility, transparency and a systematic approach
to progress (FACTS for Higher Education). The discussion shall
explain the origin of changes in law and policy and show how these
are the result of four years of study culminating in the findings
and recommendations contained in the Final Report to the Select
Committee on Higher Education Personnel (January 11, 2010).

(2) Seeking out credentialed, experienced human resources
professionals to provide staff support to the commission, council
and organizations, pursuant to section two-a, article four of this
chapter, who are committed to creating a culture of constant
improvement in a complex and rapidly changing environment. These
professionals are catalysts to promote the Fair, Accountable,
Credible, Transparent, and Systematic (FACTs) principles and to
serve the organizations by assisting them in developing and
maintaining best human resources practices.

(3) Conducting a review of the human resources function at
each organization pursuant to section nine, article seven of this
chapter to identify best practices and areas of deficiency.

(4) Developing and implementing employee training and
professional development pursuant to section six, article seven of
this chapter to assist organization professionals in applying the
Fair, Accountable, Credible, Transparent, and Systematic principles
to all human resources functions.

(5) Given that the state is considering a unified enterprise
resource program, the commission and council shall conduct a study
to determine whether a human resources information system capable
of meeting a wide range of data requirements to support personnel
and policy initiatives is necessary. The findings of the study,
along with any recommendations, shall be reported to the
Legislative Oversight Commission on Education Accountability by
December 1, 2011.

(6) Establishing the Compensation Planning and Review
Committee pursuant to section five of this article and the Job
Classification Committee pursuant to section four of this article
whose members participate and represent a broad range of higher
education interests in the decision and policy-making process.

(7) Providing data throughout the implementation process to
the Legislative Oversight Commission on Education Accountability to
inform state policymakers of progress and to provide a forum for
further discussion of higher education personnel issues and
employee concerns.

ARTICLE 10. FEES AND OTHER MONEY COLLECTED AT STATE INSTITUTIONS
OF HIGHER EDUCATION.

§18B-10-1. Enrollment, tuition and other fees at education
institutions; refund of fees.

(a) Each governing board shall fix tuition and other fees for
each academic term for the different classes or categories of
students enrolling at the state institution of higher education
under its jurisdiction and may include among the tuition and fees
any one or more of the following as defined in section one-b of
this article:

(1) Tuition and required educational and general fees;

(2) Auxiliary and auxiliary capital fees; and

(3) Required educational and general capital fees.

(b) A governing board may establish a single special revenue
account for each of the following classifications of fees:

(1) All tuition and required educational and general fees
collected;

(2) All auxiliary and auxiliary capital fees collected; and

(3) All required educational and general capital fees
collected to support existing systemwide and institutional debt
service and future systemwide and institutional debt service,
capital projects and campus renewal for educational and general
facilities.

(4) Subject to any covenants or restrictions imposed with
respect to revenue bonds payable from the accounts, a governing
board may expend funds from each special revenue account for any
purpose for which funds were collected within that account
regardless of the original purpose for which the funds were
collected.

(c) The purposes for which tuition and fees may be expended
include, but are not limited to, health services, student
activities, recreational, athletic and extracurricular activities.
Additionally, tuition and fees may be used to finance a students’
attorney to perform legal services for students in civil matters at
the institutions. The legal services are limited to those types of
cases, programs or services approved by the president of the
institution where the legal services are to be performed.

(d) By October 1, 2011, the commission and council each shall
propose a rule for legislative approval in accordance with article
three-a, chapter twenty-nine-a of this code to govern the fixing,
collection and expenditure of tuition and other fees by the
governing boards under their respective jurisdictions.

(e) The schedule of all tuition and fees, and any changes in
the schedule, shall be entered in the minutes of the meeting of the
appropriate governing board and the board shall file with the
commission or council, or both, as appropriate, and the Legislative
Auditor a certified copy of the schedule and changes.

(f) The governing boards shall establish the rates to be
charged full-time students, as defined in section one-b of this
article, who are enrolled during a regular academic term.

(1) Undergraduate students taking fewer than twelve credit
hours in a regular term shall have their fees reduced pro rata
based upon one twelfth of the full-time rate per credit hour and
graduate students taking fewer than nine credit hours in a regular
term shall have their fees reduced pro rata based upon one ninth of
the full-time rate per credit hour.

(2) Fees for students enrolled in summer terms or other
nontraditional time periods shall be prorated based upon the number
of credit hours for which the student enrolls in accordance with
this subsection.

(g) All fees are due and payable by the student upon
enrollment and registration for classes except as provided in this
subsection:

(1) The governing boards shall permit fee payments to be made
in installments over the course of the academic term. All fees
shall be paid prior to awarding course credit at the end of the
academic term.

(2) The governing boards also shall authorize the acceptance
of credit cards or other payment methods which may be generally
available to students for the payment of fees. The governing
boards may charge the students for the reasonable and customary
charges incurred in accepting credit cards and other methods of
payment.

(3) If a governing board determines that a student's finances
are affected adversely by a legal work stoppage, it may allow the
student an additional six months to pay the fees for any academic
term. The governing board shall determine on a case-by-case basis
whether the finances of a student are affected adversely.

(4) The commission and council jointly shall propose a rule in
accordance with article three-a, chapter twenty-nine-a of this code
defining conditions under which a governing board may offer tuition
and fee deferred payment plans itself or through third parties.

(5) A governing board may charge interest or fees for any
deferred or installment payment plans.

(h) In addition to the other fees provided in this section,
each governing board may impose, collect and distribute a fee to be
used to finance a nonprofit, student-controlled public interest
research group if the students at the institution demonstrate
support for the increased fee in a manner and method established by
that institution's elected student government. The fee may not be
used to finance litigation against the institution.

(i) Governing boards shall retain tuition and fee revenues not
pledged for bonded indebtedness or other purposes in accordance
with the tuition rules proposed by the commission and council
pursuant to this section. The tuition rules shall address the
following areas:

(1) Providing a basis for establishing nonresident tuition and
fees;

(2) Allowing governing boards to charge different tuition and
fees for different programs;

(3) Authorizing a governing board to propose to the
commission, council or both, as appropriate, a mandatory auxiliary
fee under the following conditions:

(A) The fee shall be approved by the commission, council or
both, as appropriate, and either the students below the senior
level at the institution or the Legislature before becoming
effective;

(B) Increases may not exceed previous state subsidies by more
than ten percent;

(C) The fee may be used only to replace existing state funds
subsidizing auxiliary services such as athletics or bookstores;

(D) If the fee is approved, the amount of the state subsidy
shall be reduced annually by the amount of money generated for the
institution by the fees. All state subsidies for the auxiliary
services shall cease five years from the date the mandatory
auxiliary fee is implemented;

(E) The commission or council or both, as appropriate, shall
certify to the Legislature annually by October 1 the amount of fees
collected for each of the five years;

(4) Establishing methodology, where applicable, to ensure
that, within the appropriate time period under the compact,
community and technical college tuition rates for students in all
community and technical colleges will be commensurate with the
tuition and fees charged by their peer institutions.

(j) A penalty may not be imposed by the commission or council
upon any governing board based upon the number of nonresidents who
attend the institution unless the commission or council determines
that admission of nonresidents to any institution or program of
study within the institution is impeding unreasonably the ability
of resident students to attend the institution or participate in
the programs of the institution. The governing boards shall report
annually to the commission or council on the numbers of
nonresidents and any other enrollment information the commission or
council may request.

(k) Tuition and fee increases of the governing boards,
including the governing boards of Marshall University and West
Virginia University, are subject to rules adopted by the commission
and council pursuant to this section and in accordance with article
three-a, chapter twenty-nine-a of this code. The commission or
council, as appropriate, shall examine individually each request
from a governing board for an increase and make its determinations
as follows:

(1) A tuition and fee increase greater than five percent for
resident students proposed by a governing board requires the
approval of the commission or council, as appropriate.

(2) A fee used solely for the purpose of complying with the
athletic provisions of 20 U.S.C. 1681, et seq., known as Title IX
of the Education Amendment of 1972, is exempt from the limitations
on fee increases set forth in this subsection for three years from
the effective date of the section.

(3) In determining whether to approve or deny a governing
board's request for a tuition and/or fee increase for resident
students greater than the increases granted pursuant to subdivision
(1) of this subsection, the commission or council shall determine
the progress the governing board has made toward meeting the
conditions outlined in this subsection and shall make this
determination the predominate factor in its decision. The
commission or council shall consider the degree to which each
governing board has met the following conditions:

(A) Maximizes resources available through nonresident tuition
and fee charges to the satisfaction of the commission or council;

(B) Consistently achieves the benchmarks established in the
compact pursuant to article one-d of this chapter;

(C) Continuously pursues the statewide goals for post-secondary education and the statewide compact established in this
chapter;

(D) Demonstrates to the satisfaction of the commission or
council that an increase will be used to maintain high-quality
programs at the institution;

(E) Demonstrates to the satisfaction of the commission or
council that the governing board is making adequate progress toward
achieving the goals for education established by the southern
regional education board;

(F) Demonstrates to the satisfaction of the commission or
council that the governing board has considered the average per
capita income of West Virginia families and their ability to pay
for any increases; and

(G) Demonstrates to the satisfaction of the commission or
council that base appropriation increases have not kept pace with
recognized nation-wide inflationary benchmarks;

(4) This section does not require equal increases among
governing boards nor does it require any level of increase by a
governing board.

(5) The commission and council shall report to the Legislative
Oversight Commission on Education Accountability regarding the
basis for approving or denying each request as determined using the
criteria established in this subsection.